Haas NewsWire


Haas NewsWire, March 6, 2006



Nobel Laureate to Address MFE Commencement, March 17


Master’s in Financial Engineering (MFE)

When William F. Sharpe, an originator of the Capital Asset Pricing Model, addresses the fifth graduating class of the Master’s in Financial Engineering (MFE) Program on Friday, March 17, he will be the third Nobel Laureate to do so in
the program’s five-year history.


Sharpe, who is the STANCO 25 Professor of Finance, emeritus, at Stanford University’s Graduate School of Business, will address the 59 graduates of the fifth MFE class at a private ceremony. The Gifford Fong Associates Applied Finance Project Prize will be awarded at the ceremony as well. The ceremony will take place at 9:00 a.m. in the Arthur Andersen Auditorium. A reception will follow in the Wells Fargo Room.


Sharpe was honored with the Nobel Prize in Economic Sciences in 1990, an award he shared with Harry M. Markowitz of the City University of New York and Merton H. Miller of the University of Chicago, for pioneering work in the theory of financial economics. Sharpe is also co-founder and current board member of Financial Engines, a firm that provides online investment advice and management for individuals.


Previous Nobel Laureates that have addressed the MFE commencement are Myron S. Scholes and Robert Merton, both of whom were awarded the prize in Economic Sciences in 1997 for development of a pioneering formula for the valuation of stock options. Scholes spoke in 2003 and Merton in 2002.


For more information on the Haas School’s MFE program, visit http://mfe.haas.berkeley.edu.


[top of page]


Professors Sagi and Stanton Win Best Paper Award for Cracking “Closed-End Fund Puzzle”


Assistant Professor Jacob Sagi and Associate Professor Richard Stanton recently won Best Paper award at the prestigious Utah Winter Finance Conference for their work solving the “closed-end fund puzzle.”


Sagi and Stanton, both in the Haas Finance Group, teamed up with Martin Cherkes, a Princeton University economics lecturer, to devise an answer to the “closed-end fund puzzle,” one of the longest standing anomalies in finance. The puzzle is why closed-end funds – publicly traded companies that invest in securities and issue a set number of shares – usually trade at a discount to the value of the assets that they hold? And why are investors willing to buy a closed-end fund at a premium at its initial public offering knowing that it will later fall to a discount?


Sagi, Stanton, and Cherkes develop a fully rational, simple economic explanation: Closed-end funds allow investors to buy illiquid securities, without facing the potential costs of direct trading and of open-end mutual funds. Their findings are a departure from the conclusion of most economists, who have argued that investor irrationality is the only possible explanation for the existence of closed-end funds.


The authors concluded that the discount on closed-end funds results from a tradeoff between the liquidity benefits of investing in the fund and the fees charged by the fund's managers. Their model predicts that IPOs of closed-end funds will occur in waves in certain sectors at a time, that funds will be issued at a premium to the value of the assets they hold, and that they will later usually trade at a discount.


The trio also conducted an empirical investigation, which showed strong support for their model. Their paper, "A Liquidity-Based Theory of Closed-End Funds,” was one of only ten selected out of 164 submissions to the 16th annual finance conference.


[top of page]


Warren H. Hellman to Receive the Lester Center's Lifetime Achievement Award


San Francisco financier Warren H. Hellman, co-founder of Hellman & Friedman, will be honored with the Lester Center Lifetime Achievement in Entrepreneurship & Innovation Award at a special Berkeley Entrepreneurs Forum to be held on Thursday, March 23, from 6:30 p.m. to 9:30 p.m. in the Arthur Andersen Auditorium.


Hellman & Friedman has raised and managed over $8 billion of committed capital and invested in over 50 companies in its 18-year history, helping to build such companies as PowerBar, Levi Strauss, and the NASDAQ Stock Market. In addition to being a founder and managing director with Hellman & Friedman, Hellman also serves as a director of various public and private companies, including Levi Strauss & Co.; D.N. & E. Walter & Co.; and Sugar Bowl Corporation. He is also a trustee of The San Francisco Foundation and a member of the Haas School Advisory Board. In 2005, Hellman was inducted into the American Academy of Arts and Sciences.


"Warren Hellman is a great entrepreneur, investor and social benefactor," says Jerome Engel, executive director of the Lester Center for Entrepreneurship & Innovation. "His commitment to supporting the arts, especially his support of San Francisco's 'Hardly Strictly Bluegrass Festival' speaks volumes about the character and personality of an individual we are proud to honor."


The Lifetime Achievement in Entrepreneurship & Innovation Award is presented annually by the Lester Center for Entrepreneurship & Innovation at the Haas School of Business to recognize entrepreneurial leaders who have encouraged innovation and fostered the success of others. Previous awardees include Dr. Gordon E. Moore (2000), William R. Hambrecht (2001), Dr. Edward E. Penhoet (2002), Dr. Ralph Landau (2003), Sanford R. Robertson (2004), and C. Richard Kramlich (2005).


This special event starts at 6:30 p.m. with networking in the Bank of America Forum; the program will proceed at 7:15 p.m. in the Arthur Andersen Auditorium, with professional colleagues paying tribute to Hellman. For more information and to register, go to http://entrepreneurship.berkeley.edu/mar06.asp.


[top of page]


Teams Gear up for UC Berkeley Business Plan Competition Semi-Finals, March 24


Consumer software is the leading industry for teams competing in the semi-final round of the UC Berkeley Business Plan Competition, which takes place in a private event on March 24.


From an original field of 54 teams that submitted executive summaries, 23 teams have advanced to the competition’s semi-finals. Seven of these semi-finalists have plans in the consumer software industry, including StockHarmony, an online community for investors; Portable Systems, whose y-POD offers a computing platform that lets users work in their own computing environment regardless of a host computer’s operating system; and LoveEnsure, an online interactive management tool for couples. Five plans focus on high-tech areas other than consumer software, four on biotech, and three on energy.


The competition was founded in 1999 by Berkeley MBA students at the Haas School of Business and is hosted by the Haas School’s Lester Center for Entrepreneurship & Innovation in partnership with the College of Engineering, the School of Information Management, and the UC San Francisco Innovation Accelerator. To be eligible, each team must have at least one UC Berkeley or UC San Francisco student, faculty, staff, or alumni member.


A panel of venture capitalists from the Bay Area and Silicon Valley judge the competition. Throughout the competition teams can work with mentors and participate in workshops on how to hone their business plans, make a pitch, or ask for money.


Six to eight finalists will emerge from the semifinal round to compete in the finals for $45,000 in prize money. The finalists will present their pitches to the public at the final event on Thursday, April 27, in Arthur Andersen Auditorium at the Haas School. For more information on the UC Berkeley Business Plan Competition, visit http://bplan.berkeley.edu/.


[top of page]


Myth or Reality: Haas Hosts a Debate on Corporate Social Responsibility, March 15


Professor David Vogel will go head to head with the Jeffrey Hollender, CEO and founder of Seventh Generation, to debate "Corporate Social Responsibility: Myth or Reality" at a special event organized by Net Impact on Wednesday, March 15, at 6:30 p.m.


This debate will take place in the Great Hall at the Bancroft Hotel on Bancroft Way in Berkeley. Seating is limited, so register in advance at www.netimpact.org/events.


Hollender and Vogel bring well-informed perspectives to the debate, since both have written books on the topic. Hollender's book, What Matters Most – How a Small Group of Pioneers is Teaching Social Responsibility to Big Business, and Why Big Business is Listening, has just been released in soft cover and will be available for purchase at the event. Vogel's recent book, The Market for Virtue: The Potential and Limits of Corporate Social Responsibility, was published in late 2005, and will also be available for purchase.


This event is sponsored by Seventh Generation in partnership with Net Impact and Alloy Media and Marketing. It is hosted by the Haas School of Business and UC Berkeley's Net Impact chapter. The debate will be followed by a book signing and cocktail hour.


[top of page]


Haas in the News


John Morgan, professor in the Economic Analysis & Policy Group, was quoted in a March 2 Contra Costa Times article titled “Professors unlock key to eBay sales.” For full article: http://www.contracostatimes.com/mld/cctimes/news/local/states/california/13997485.htm


Former Dean Laura Tyson and Kellie McElhaney, adjunct assistant professor and executive director of the Center for Responsible Business, were mentioned the Trend Watching column on the GreenBiz.com web site titled “MBAs Drive Social Responsibility in California.” For full article: http://www.greenbiz.com/news/columns_third.cfm?NewsID=30389&pic=3


Hillary Anger Elfenbein, assistant professor in the Organizational Behavior and Industrial Relations Group, was quoted in a February 28 San Francisco Chronicle article titled “If you like fiction, read job resumes,” regarding business ethics in relation to resume writing. For full article: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/02/28/BAGM5HFU5M1.DTL


Peter Sealey, adjunct professor in the Marketing Group, was mentioned in a February 27 New York Times article titled “The Big Man Still Reigns in Hollywood.” For full article: http://www.nytimes.com/2006/02/27/business/media/27carr.html


Severin Borenstein, the E.T. Grether Professor of Business Administration and Public Policy, was mentioned in a February 26 New York Times article titled “Americans Are Cautiously Open to Gas Tax Rise, Poll Shows,” regarding the possible effect of a gas tax increase on gas consumption. For full article: http://www.nytimes.com/2006/02/28/national/28gas.html?_r=1


David Vogel, the George Quist Professor of Business Ethics, was quoted in a February 25 Fortune article titled “How UPS, Starbucks, Disney Do Good,” regarding the success of Starbucks. For full article: http://money.cnn.com/2006/02/23/news/companies/mostadmired_fortune_responsible/?cnn=yes


Borenstein was quoted in a February 25 Contra Costa Times article titled “Profits don't always rise with gas prices.” For full article: http://www.contracostatimes.com/mld/cctimes/news/local/states/california/13960158.htm


Cynthia Kroll, senior regional economist for the Fisher Center for Real Estate and Urban Economics, was mentioned in a February 24 San Francisco Chronicle article titled “Tech jobs still plentiful in US - Optimistic report calls offshoring's effects overstated.” For full article: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2006/02/24/BUGSVHDJ1E1.DTL&type=business


Dwight Jaffee, the Willis Booth Professor of Banking, Finance, and Real Estate, was quoted in a February 24 Washington Post article titled “Report Finds Accounting Practices That Start at the Bottom Line.” For full article: http://www.washingtonpost.com/wp-dyn/content/article/2006/02/23/AR2006022302064.html


Sealey was quoted in a February 23 Fort Worth Star Telegram article titled “Now, on the image repairs,” regarding Radio Shack’s CEO and his false academic degree. For full article: http://www.dfw.com/mld/dfw/business/13941268.htm


Will Rosenzweig, lecturer in the Center for Responsible Business, was quoted in a February 17 San Francisco Business Times article titled “Marin firm aims ‘functional food’ at store shelves.” For full article: http://www.bizjournals.com/sanfrancisco/stories/2006/02/20/story8.html


Executive Associate Dean Richard Lyons was quoted in an article on foreign exchange traders, titled “Lockruf der Geldwechsler,” in the German newspaper Die Zeit on February 2. For full article: www.zeit.de/herdentrieb


[top of page]


Happening at Haas


CENTER FOR RESPONSIBLE BUSINESS EVENT
CEO Compensation: The Fix - What's Right and Wrong with Corporate Compensation Today?
Tuesday, March 7
7:30 p.m.
Goldberg Room, Boalt Hall School of Law
For more information, please contact Adam Weisberg at aweisberg@berkeleyhillel.org .


MANAGEMENT OF TECHNOLOGY LECTURE SERIES
Consumer Intelligence by Dick Buell, Catalina Marketing
Wednesday, March 15
4:00 p.m. to 6:00 p.m.
Wells Fargo Room
For more information, contact Susan Reneau at sreneau@haas.berkeley.edu.


COMPUTER SCIENCE AND BUSINESS ASSOCIATION TECHNOLOGY EXPOSITION
Thursday, March 16
11:00 a.m. to 4:00 p.m.
Pauley Ballroom
For more information, contact Heather Schrader at hschrader@berkeley.edu.


BERKELEY CONFERENCE OF AFRICAN-AMERICANS
“Pipeline to Excellence: Recreating the Village”
Saturday, March 18
8:00 a.m. to 10:00 p.m.
MLK Pauley Ballroom
For more information, contact pipelinetoexcellence@gmail.com.
To register, go to http://www.ocf.berkeley.edu/~bcaa/registration.html.


BERKELEY ENTREPRENEURS FORUM
“Presentation of the 2006 Lifetime Achievement in Entrepreneurship & Innovation Award”
Thursday, March 23
6:30 p.m. to 8:30 p.m.
Arthur Andersen Auditorium
For more information, visit http://entrepreneurship.berkeley.edu/bef.asp.


BERKELEY CONFERENCE ON HOUSING AND URBAN POLICY
"Risking House and Home: Managing Catastrophe in the American Metropolis"
Friday, March 24
9:00 a.m. to 4:00 p.m.
Arthur Andersen Auditorium
For more information, visit http://urbanpolicy.berkeley.edu/2006conference.htm or contact housing@haas.berkeley.edu.
To register, go to http://www.regonline.com/Checkin.asp?EventId=89467.


Seminars


SEMINAR IN ECONOMIC ANALYSIS AND POLICY
“Reaching for the Stars: Who Pays for Talent in Innovative Industries?” by Kathryn Shaw, Stanford
Wednesday, March 8
2:00 p.m. to 3:30 p.m.
Cheit Hall 250
For more information, contact Carol Chapman at cchapman@haas.berkeley.edu.


SEMINAR IN ORGANIZATIONAL BEHAVIOR AND INDUSTRIAL RELATIONS
Sheldon Zedeck, UC Berkeley Department of Psychology
Thursday, March 8
4:00 p.m. to 5:30 p.m.
Cheit Hall 330
For more information, contact Deborah Houy at houy@haas.berkeley.edu.


FINANCE SEMINAR
"Is Stock Picking Declining Around the World" by Utpal Bhattacharya, Indiana University
Thursday, March 9
4:10 p.m. to 5:40 p.m.
Cheit Hall 220
For more information, contact June Wong at june@haas.berkeley.edu.


INSTITUTIONAL ANALYSIS WORKSHOP
Statistical Game Theory by Michael Chwe, UCLA
Thursday, March 9
4:10 p.m. to 6:00 p.m.
Cheit Hall 325
For more information, contact Anita Stephens at stephens@haas.berkeley.edu.


SHANSBY MARKETING SEMINAR SERIES
"Recommendation Systems with Purchase Data," by Anand Bodapati, UCLA
Friday, March 10
4:00 p.m. to 5:30 p.m.
Cheit Hall 250
For more information, contact Laura Gardner at lgardner@haas.berkeley.edu.


SEMINAR IN ECONOMIC ANALYSIS AND POLICY
"Why is Scale So Important in Vertical Integration?" by Chad Syverson, Chicago
Wednesday, March 15
2:00 p.m. to 3:30 p.m.
Cheit Hall 250
For more information, contact Carol Chapman at cchapman@haas.berkeley.edu.


FINANCE SEMINAR
"The Myth of Long Horizon Predictability" by Matthew Richardson, New York University
Thursday, March 16
4:10 p.m. to 5:40 p.m.
Cheit Hall 220
For more information, contact June Wong at june@haas.berkeley.edu.


INSTITUTIONAL ANALYSIS WORKSHOP
Regulatory Harmonization and the Development of Private Equity Markets by Douglas Cumming, RPI
Thursday, March 16
4:10 p.m. to 6:00 p.m.
Cheit Hall 325
For more information, contact Anita Stephens at stephens@haas.berkeley.edu.


SHANSBY MARKETING SEMINAR SERIES
Wilfred Amaldoss, Duke University
Friday, March 17
4:00 p.m. to 5:30 p.m.
Cheit Hall 250
For more information, contact Laura Gardner at lgardner@haas.berkeley.edu.


SEMINAR IN ECONOMIC ANALYSIS AND POLICY
“ US News Rankings and College Competition” by Ginger Jin, Maryland
Wednesday, March 22
2:00 p.m. to 3:30 p.m.
Cheit Hall 250
For more information, contact Carol Chapman at cchapman@haas.berkeley.edu.


FINANCE SEMINAR
Robert Goldstein, University of Minnesota
Thursday, March 23
4:10 p.m. to 5:40 p.m.
Cheit Hall 220
For more information, contact June Wong at june@haas.berkeley.edu.


INSTITUTIONAL ANALYSIS WORKSHOP
Impact of Labor Contracts on Property Rights: Commercial Fisheries by Sylvia Brandt, UMass and University of Berkeley
Thursday, March 23
4:10 p.m. to 6:00 p.m.
Cheit Hall 325
For more information, contact Anita Stephens at stephens@haas.berkeley.edu.


SHANSBY MARKETING SEMINAR SERIES
K. Sudhir, Yale University
Friday, March 24
4:00 p.m. to 5:30 p.m.
Cheit Hall 250
For more information, contact Laura Gardner at lgardner@haas.berkeley.edu.


INSTITUTIONAL ANALYSIS WORKSHOP
Make or Buy in Movies by Richard Gil, UCSB
Thursday, April 6
4:10 p.m. to 6:00 p.m.
Cheit Hall 325
For more information, contact Anita Stephens at stephens@haas.berkeley.edu.


SHANSBY MARKETING SEMINAR SERIES
“Neural antecedents of financial decision-making” by Brian Knutson, Stanford University
Friday, April 7
4:00 p.m. to 5:30 p.m.
Cheit Hall 250
For more information, contact Laura Gardner at lgardner@haas.berkeley.edu.


Alumni Events


NEW ENGLAND ALUMNI
Cross-Business School Happy Hour
Tuesday, March 7
6:00 p.m. to 9:00 p.m.
Julien Bar and Lounge, Langham Hotel, 250 Franklin Street, Boston
Join alumni from Wharton (University of Pennsylvania), Sloan (MIT), INSEAD, IMD, Stanford, Stern (NYU), Tuck (Dartmouth), SOM (Yale), London Business School, Johnson (Cornell), Fuqua (Duke), Harvard, and Columbia for the monthly Cross-Business Happy Hour. It is a great way to meet and mingle with alums from Haas and other business schools.
For more information, contact Karen O'Brien at karen_obrien@usa.net.


EAST BAY ALUMNI
Haas Celebration in the East Bay. Rose vs. Lyons, Distinguished Faculty Go Head-to-Head: “Is the World Flat?”
Tuesday, March 14
6:00 p.m. to 8:30 p.m.
William F. Cronk Conference Center, Dreyer's Headquarters, 5929 College Avenue
The East Bay Chapter of the Haas Alumni Network invites you to attend a debate and discussion: Rose vs. Lyons: Distinguished Faculty Go Head-to-Head. Haas Professors Andy Rose and Rich Lyons tackle the topic, “Is the World Flat?" This always popular event is not to be missed.
To register, go to http://www.acteva.com/booking.cfm?bevaid=104696. This event will sell out, so register early.
For more information, contact the Haas Alumni Relations office, alumni@haas.berkeley.edu.


SAN FRANCISCO ALUMNI
Haas Connections Evening
Thursday, March 16
6:30 p.m. to 10:00 p.m.
Sailor's Landing, 305 Harbor Drive, Sausalito
San Francisco alumni are invited to our monthly networking and socializing evening. Reconnect with friends and meet new alumni. This is always a fun evening.


BAY AREA ALUMNI
Boalt Conference “Post-Enron Corporate Regulation – Has the Pendulum Swung Too Far (or Not Far Enough)?”
Friday, March 17
8:15 a.m. to 5:30 p.m.
Boalt Hall School of Law
Keynote Speaker: Harvey Goldschmid, Former SEC Commissioner; Dwight Professor of Law, Columbia University School of Law. This conference will bring together for the first time practitioners, economists, regulators, corporate law scholars and other experts to discuss and debate the effect of Sarbanes-Oxley and related regulation enacted in the wake of Enron and other late nineties scandals.
To register, go to http://www.law.berkeley.edu/centers/bclbe/symposia/postenron/register.html.
For more information, contact Theresa Molino at tmolino@law.berkeley.edu, or 510-643-8138.


SAN FRANCISCO BREA/HAAS ALUMNI
First Annual Investment Outlook: Debate between Ken Rosen and Peter Linneman, "Real Estate Market: Boom or Bust?"
Tuesday, March 21
5:00 p.m. to 7:30 p.m.
Colonial Room, Westin St. Francis Hotel, 335 Powell Street, San Francisco
A debate between the nation’s two most prominent real estate economists, Ken Rosen and Peter Linneman. Evening includes a cocktail reception and debate. Sponsored by Berkeley Real Estate Alumni Association, Wharton/Penn Real Estate Group of Northern California and San Francisco Chapter of the Haas Alumni Network.
For more information, contact Eric Cress at eric@pacbayinv.com.


EAST BAY ALUMNI
Career Transition Series: Finding Your Right Path Forward
Tuesday, March 28
6:30 p.m. to 8:00 p.m.
S489, Haas School of Business
The East Bay Alumni Chapter invites all alumni to the Career Transition Series: Finding Your Right Path Forward. The speaker Ron Elsdon, Ph.D. is the founder of Elsdon Organizational Renewal and New Beginnings Career and College Guidance. Ron specializes in the career and workforce development fields, providing individual coaching and career counseling, organizational consulting, public speaking, publishing and lecturing. The cornerstone of career fulfillment is clarity about what is important and meaningful and then translating that into action. In this session we will explore various approaches to building clarity about future paths drawing on past experience to inform present and future decisions.
To register, go to http://www.acteva.com/booking.cfm?bevaid=105854. Space is limited, so register soon.
For more information, contact Jason Chang at jasonchang@mba.berkeley.edu or 510-264-4136.


NEW ENGLAND ALUMNI
Cross Business School Happy Hour
Tuesday, April 4
6:00 p.m. - 9:00 p.m.
Julien Bar and Lounge, Langham Hotel, 250 Franklin Street, Boston
Join alums from Wharton, Sloan (MIT), INSEAD, IMD, Stanford, Stern, (NYU), Tuck ( Dartmouth), SOM (Yale), London Business School, Johnson (Cornell), Fuqua (Duke), Harvard, and Columbia for the monthly Cross Business Happy Hour. It is a great way to meet and mingle with alums from Haas and other business schools.
For more information, contact Karen O'Brien at karen_obrien@usa.net.


[top of page]


The Haas NewsWire is the electronic news weekly for the Haas community published every Monday by the Marketing and Communications Office at the Haas School. Send your news, feedback, and suggestions to haasnews@haas.berkeley.edu .


Archived issues of Haas NewsWire are available online at
http://haas.berkeley.edu/groups/newspubs/haasnews/archives/hnarchiv.html


To subscribe to Haas NewsWire visit https://lists.haas.berkeley.edu/mailman/listinfo.