Eclipse of the Public Corporation Revisited: Concentrated Equity Ownership Theory

Posted: 19 May 2017 Last revised: 28 Jun 2017

See all articles by Claudio R. Rojas

Claudio R. Rojas

National Angel Capital Organization

Date Written: May 18, 2017


For almost a decade, the author has outperformed many of the world's greatest investors. This working paper reveals the economic basis for this outperformance, which extends beyond idiosyncratic stock selection abilities.

Concentrated equity ownership theory, an economic discovery made in 2007, explains the rise of founder centric firms over the subsequent decade. This paper introduces a dynamic unifying governance model, while uncovering theoretical links between otherwise disconnected economic phenomena.

In illustrating theoretical continuity in the seemingly disparate investment styles of Jorge Paulo Lemann with 3G Capital, William A. Ackman with Pershing Square Capital Management, and Warren Buffett with Berkshire Hathaway, the author identifies hidden economic efficiencies powering the world's largest companies from Apple to Facebook, Google and Amazon.

The novel economic theory presented in this paper also outlines legal and extra-legal mechanisms driving macroeconomic phenomena, specifically those at play in Canada and Silicon Valley - distinct geographic regions uniquely situated for robust economic performance over the next century.

This working paper is forthcoming and builds upon the theoretical foundations established in "An Indeterminate Theory of Canadian Corporate Law" (peer-reviewed manuscript, published in the University of British Columbia Law Review, 2014).

Keywords: shareholder activism, concentrated equity ownership, control structures, founder centrism, investor activism, hedge fund activism

Suggested Citation

Rojas, Claudio R., Eclipse of the Public Corporation Revisited: Concentrated Equity Ownership Theory (May 18, 2017). Available at SSRN:

Claudio R. Rojas (Contact Author)

National Angel Capital Organization ( email )

101 College St
Suite 120G
Toronto, Ontario M5G 1L7


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