$6.2b The cam­era and op­ti­cal equip­ment maker’s of­fer puts it ahead of ri­val bid­ders Fu­ji­film Hold­ings and a group that in­cludes Kon­ica Mi­nolta and Per­mira Hold­ings. Af­ter a mas­sive ac­count­ing scan­dal, Toshiba is fo­cus­ing on mak­ing tele­vi­sions and com­pute

Canon bids for Toshiba’s med­i­cal unit.

Bloomberg Businessweek (North America) - - Markets/finance - By Kyle Stock

fee equal to 2 per­cent of as­sets, plus 20 per­cent on any prof­its— Kooyker charges 2.25 and 25, ac­cord­ing to Blen­heim in­vestor let­ters and pre­sen­ta­tions.

In 2011 the fund sank 23.5 per­cent, one of its worst years. More red ink flowed in 2012 and 2013, and again last year. The dif­fi­cult run is par­tic­u­larly no­table be­cause Kooyker has been known for rig­or­ous risk man­age­ment. If one of his port­fo­lio man­agers runs up a 10 per­cent loss, higher-ups de­mand to know why. If a loss reaches 20 per­cent, man­agers are forced to sell po­si­tions and take month­long leaves. If they do worse than that, they’re usu­ally shown the door.

Peo­ple fa­mil­iar with Blen­heim say that, in ret­ro­spect, the firm’s as­sets grew so quickly dur­ing the early 2000s that Kooyker had trou­ble spot­ting mon­ey­mak­ing op­por­tu­ni­ties. NEPC, a con­sult­ing firm that ad­vises pen­sion funds about where to in­vest, also pointed to some prob­lems. Blen­heim “in some in­stances has been pre­ma­ture” with a strat­egy that later turned out to be right, NEPC said in a March 2014 pre­sen­ta­tion to the Univer­sity of Maine’s com­mit­tee that over­sees en­dow­ment and pen­sion funds. In some cases, NEPC said, Blen­heim would re­spond to losses by re­duc­ing its ex­po­sure to risk, only to miss out on gains when the mar­ket re­bounded.

To­day, 50-odd em­ploy­ees help Kooyker run sev­eral funds. His­tor­i­cally he’s man­aged about 75 per­cent of the as­sets him­self, but Kooyker now runs as lit­tle as 15 per­cent, ac­cord­ing to a pre­sen­ta­tion in Fe­bru­ary by NEPC for the Univer­sity of Maine funds. It said “this may sig­nal a move to­wards his re­tire­ment.”

His long­time lieu­tenant and num­bers whiz, Thomas Kopczynski, re­mains a key trader, peo­ple fa­mil­iar with the struc­ture say. Sev­eral other Blen­heim traders have left. The ques­tion is whether more in­vestors will de­part, too. So far, Kooyker is heed­ing Churchill’s ad­vice: Never give in. �Javier Blas

Im­pe­rial Oil sells gas sta­tions. The Cana­dian com­pany, ma­jor­ity-owned by Exxonmo­bil, is sell­ing al­most 500 Es­so­branded out­lets.

Alvo­gen buys County Line. Both com­pa­nies spe­cial­ize in generic drugs and were started in the past decade by ex­ec­u­tives who had left larger phar­ma­ceu­ti­cal mak­ers.

Ever­lane shops for in­vestors. The on­line ap­parel startup val­ues it­self at a quar­ter of a bil­lion dol­lars as it seeks a fresh round of cap­i­tal. It has raised $18 mil­lion in pre­vi­ous rounds.

Hall­mark Cards takes Crown Me­dia pri­vate. The sta­tionery gi­ant al­ready owns 90 per­cent of Crown, a ca­ble-tv com­pany that op­er­ates the Hall­mark Chan­nel, among oth­ers.

In­dia hawks Con­tainer Corp. The coun­try is rais­ing money by sell­ing 5 per­cent of the state-run lo­gis­tics com­pany, which op­er­ates rail cargo de­pots, in a pub­lic of­fer­ing.

Adecco branches out. The world’s largest tem­po­rary staffing com­pany bought Penna Con­sult­ing, an ex­ec­u­tive-re­cruit­ing firm in the U.K.

The genome gets cheaper. Ver­i­tas Ge­net­ics priced a ser­vice that se­quences all 6 bil­lion let­ters of a per­son’s in­di­vid­ual DNA. It will be in­tro­duced next month. The bot­tom line The com­modi­ties rout seems to have caught one of the best traders by sur­prise, de­spite his fo­cus on con­trol­ling risk.

Edited by Pat Regnier Bloomberg.com

Right be­fore Christ­mas, two power com­pa­nies in Ukraine were si­mul­ta­ne­ously tar­geted in what’s now re­garded as the world’s first suc­cess­ful cy­ber at­tack on a pub­lic util­ity. The hack­ers (most likely Rus­sians) knocked out elec­tric­ity to more than 80,000 cus­tomers for sev­eral hours. Luck­ily, Ukraine’s power grid is some­what an­ti­quated, and au­thor­i­ties were able to re­store elec­tric­ity in a few hours by re­set­ting break­ers by hand. The les­son: In the age of cy­ber­crime, the best in­sur­ance may be ana­log.

As we’ve rushed to con­nect ev­ery­thing from power plants to home ther­mostats to the In­ter­net, the risk of a cat­a­strophic cy­ber at­tack has mul­ti­plied, be­cause the sys­tems peo­ple rely on are now more com­plex, com­mu­nica­tive, and con­cen­trated. “You’re buy­ing a ca­pa­bil­ity, but at the same time you’re buy­ing a vul­ner­a­bil­ity,” says Richard Danzig, for­mer sec­re­tary of the Navy and a se­nior fel­low at the Johns Hop­kins Ap­plied Physics Lab. “A dig­i­tal at­tacker can take out all sys­tems with one at­tack.” That’s why Danzig rec­om­mends de­ploy­ing phys­i­cal backup hard­ware in the most vul­ner­a­ble places of the U. S. power grid, mil­i­tary in­stal­la­tions, and other key in­fra­struc­ture. “My ar­gu­ment is that, if your main sys­tem is dig­i­tal, you’re stronger if your safe­guard is ana­log.”

Danzig’s think­ing came out of the nu­clear power in­dus­try, where the re­cent push to dig­i­tize con­trol sys­tems has raised con­cerns among sev­eral ex­perts. “If all the com­put­ers fail at a plant, those ana­log sys­tems kick in, the rods go to the core, cool down the re­ac­tor, and there’s no re­lease of ra­di­a­tion,” says Perry Ped­er­son, a for­mer mem­ber of the U.S. Nu­clear Reg­u­la­tory Com­mis­sion and co­founder of the Langner Group, a se­cu­rity con­sul­tant that spe­cial­izes in in­fra­struc­ture and large-scale man­u­fac­tur­ing. “You can’t lie to ana­log equip­ment. You can’t tell a valve that it’s opened when it’s closed. It’s physics.”

What’s lost in dig­i­ti­za­tion is the con­cept of de­fense in depth, ac­cord­ing to Joe Weiss, man­ag­ing part­ner of Ap­plied Con­trol So­lu­tions and a cy­ber­se­cu­rity con­sul­tant to the power in­dus­try. “De­fense in depth means you have lay­ers of pro­tec­tion,” he says. “But dig­i­tal, even when it claims to have mul­ti­ple lay­ers, is in a sense one layer. Pen­e­trate that, and you could po­ten­tially no longer have an­other

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