Google - a model for Hedge Funds?

Since last Thursday, Google has made three very interesting announcements which highlight what I believe to be the seeds of a master plan: cementing its power as the portal for information discovery on the internet (horizontal domination), while laying the groundwork and providing incentives for those with domain-specific assets (whether in vertical search, proprietary content, etc.) to play with them (vertical participation). Let me start by saying that the world I see is one in which: (1) Google gets the most out of its generalized search technology and distribution power through legal, above-board deals with value-added content providers, while (2) stitching together powerful vertical search capabilities through either stategic alliances or acquisitions. If successful, what will emerge is a Google that will not only be the dominant portal for generalized search and discovery across the web, but one which will provide much more accurate and relevant search results for those interested in specific areas not well served by generalized search algorithms.

By striking deals with AP and MTV, Google is doing for content distribution what the hedge fund industry should be doing with side-pockets and illiquid asset valuation and compensation - getting out in front of what will only be an increasingly critical PR landscape and re-shaping the dialogue along their own lines. This is pure genius and the benefits of this approach will (hopefully) not be lost among hedge fund managers everywhere.

http://www.informationarbitrage.com/2006/08/googles_big_wee.html