The exterior of the Guggenheim Museum in Bilbao, Spain, on Oct. 8, 2007. The museum, designed by Frank O. Gehry, celebrates its tenth anniversary on Oct. 19. Photographer: James S. Russell via Bloomberg News
The exterior of the Guggenheim Museum in Bilbao, Spain, on Oct. 8, 2007. The museum, designed by Frank O. Gehry, celebrates its tenth anniversary on Oct. 19. Photographer: James S. Russell via Bloomberg News
The exterior of the Guggenheim Museum in Bilbao, Spain, on Oct. 8, 2007. The museum, designed by Frank O. Gehry, celebrates its tenth anniversary on Oct. 19. Photographer: James S. Russell via Bloomberg News
The exterior of the Guggenheim Museum in Bilbao, Spain, on Oct. 8, 2007. The museum, designed by Frank O. Gehry, celebrates its tenth anniversary on Oct. 19. Photographer: James S. Russell via Bloombe

Software assistance for visionary architect Gehry


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Iconic architectural designs often come at suitably exorbitant costs. But Frank Gehry, one of the most influential architects in the world, and one famous for abstract, one-off designs, says 3D software has helped turn his ideas into commercially viable realities.

While Mr Gehry was designing the Guggenheim Museum in Bilbao, Spain, Dassault Systemes' CATIA software helped lower costs and resulted in construction bids from contractors coming in 18 per cent under budget.

"When I saw that, I realised we have got powers here that architects don't usually have," Mr Gehry said recently.

In designing 8 Spruce Street, a lower-Manhattan tower that opened in February, Mr Gehry relied on CATIA to realise innovations such as abstract curves that led to some apartments having spacious bay windows - a luxury uncommon in the space-constrained borough.

"Walking into bay windows in New York is like being in outer space. It's a whole different experience. With CATIA, they were able to corral that into a reasonable cost," Mr Gehry said.

A city-planning division that relies on blueprints can take up to a year to review the design of a new building, but if everything is submitted via a 3D program, "it could electronically approve buildings online and save so much time", Mr Gehry said.

"Dassault builds the Boeing 777 aircraft with no paper," he said. "That is where we are going."

The struggle is on for active managers

David Einhorn closed out 2018 with his biggest annual loss ever for the 22-year-old Greenlight Capital.

The firm’s main hedge fund fell 9 per cent in December, extending this year’s decline to 34 percent, according to an investor update viewed by Bloomberg.

Greenlight posted some of the industry’s best returns in its early years, but has stumbled since losing more than 20 per cent in 2015.

Other value-investing managers have also struggled, as a decade of historically low interest rates and the rise of passive investing and quant trading pushed growth stocks past their inexpensive brethren. Three Bays Capital and SPO Partners & Co., which sought to make wagers on undervalued stocks, closed in 2018. Mr Einhorn has repeatedly expressed his frustration with the poor performance this year, while remaining steadfast in his commitment to value investing.

Greenlight, which posted gains only in May and October, underperformed both the broader market and its peers in 2018. The S&P 500 Index dropped 4.4 per cent, including dividends, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, fell 7 per cent through December. 28.

At the start of the year, Greenlight managed $6.3 billion in assets, according to a regulatory filing. By May, the firm was down to $5.5bn.