2019

Stories related to "Finance."

perspectives

The Book of Booth: Roxanne Martino, ’88

Roxanne Martino, ’88, landed her first job in finance after just a quarter and a half in the Evening MBA Program and hasn’t looked back since. The retired president and CEO of Aurora Investment Management and current managing partner of OceanM19 is an inaugural inductee in the InvestHedge Hall of Fame, and the first woman to co-chair the Council on Chicago Booth. You joined Aurora in 1990, just before the hedge fund industry took off globally alongside the rise of the internet. What was it like to be an entrepreneur at that time? It was thrilling. In the early years, we had a “creeping vine” approach to expanding our investor base—one happy investor telling another. That changed once people could search performance metrics online, and could then find us from all over the world. One of our first international clients was from Saudi Arabia. They contacted us after screening on performance data in an online database and requested firm information. We managed their capital for over 15 years. At the same time, hedge fund managers were becoming more global in their approaches. It truly became a global business on both the trading and investment sides, as well as among our clients and investors. How have career prospects changed for women in finance since then? When I went to my first hedge fund investment conference there were only about five women there—we kept in touch and, happily, most of them stayed in the business. While there are more women in finance today than there were then, there still aren’t enough women in leadership positions and on investment committees. To enable more women to attain leadership positions, they must first be hired into investment firms to get the required experience. We must all be vigilant because discrimination is often subtle. When interviewing candidates, make sure that the ratio of women is appropriate and you’re inviting women candidates to the second and third level of interviews. There are very few women CEOs period and even fewer in finance, so I try to make myself available to speak at conferences and women’s groups to assist women in finance in whatever way that I am able to help them.<br/>

conversations

A Fireside Chat with Eugene F. Fama and David Booth

Eugene F. Fama arrived at the then–Graduate School of Business by pure “serendipity,” as he puts it. A college senior on the cusp of graduation, the man who would go on to become the father of the efficient-market hypothesis discovered his application to Chicago’s PhD Program had never been received. Thankfully for the school—and for the history of finance—it was quickly rectified, and he’s been here ever since. That includes a special day in 2013, when he still showed up to teach on the morning he won the Nobel Prize in Economic Sciences. “I had never missed a class in all the years I’d been teaching,” said Fama, MBA ’63, PhD ’64, and the Robert R. McCormick Distinguished Service Professor of Finance. “I wasn’t going to start now.” He first crossed paths with David Booth, ’71, in the classroom, and Fama called him his “best student” at the time. It was Booth who took his mentor’s ideas—that stock prices reflect all relevant information, so beating the market consistently is nearly impossible—and applied them in the real world. In 1981 Booth and another alumnus, Rex Sinquefield, ’72, founded Dimensional Fund Advisors, which now manages $579 billion, mainly for institutions and individuals who invest through financial advisers. After he and Sinquefield started Dimensional, they put Fama on its management board and faculty members Merton Miller and Myron Scholes, MBA ’64, PhD ’69, on its mutual fund board, and all three men would go on to win Nobel Prizes. In 2008 David Booth gave a gift to the school valued at the time at $300 million, and the Graduate School of Business was renamed after him. “I wouldn’t have been anywhere without Chicago,” said Booth.