Follow Your Passion and Care for Others

Art Samberg
Art Samberg

The founder of family office, Hawkes Financial LLC, Arthur “Art” J. Samberg is an alumnus of the Massachusetts Institute of Technology (MIT). Art Samberg was interviewed by AeroAstro, an annual publication of MIT’s Department of Aeronautics and Astronautics, for its 2016 issue.

In the published interview, he talked about his time as an MIT student who could solve the equations but did not really have a feel for the fields of aeronautics and astronautics, and who considered himself a very average student. Working at Lockheed Corporation, he found he could do the job but realized he would never excel. After earning his MBA from Columbia University, he entered the world of finance, found his passion, and soared.

He later founded Pequot Capital Management, Inc., which at one point became the world’s largest hedge fund. The interview also touched on his generous donations to MIT including the Samberg Conference Center and substantial scholarship aid. His parting words to students is to live life to the fullest by following your passion, whatever that may be, and to care for others.


Financial Tips for Small Business Owners

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Financial Tips

Holding extensive experience in both the financial services industry and the field of hedge funds, Arthur “Art” Samberg is the former president of Dawson-Samberg Capital Management. Now operating out his family office, Hawkes Financial, LLC, Art Samberg has enjoyed success in founding his own companies.

Small business owners are often tripped up by the financial aspects of running a company. Thankfully, current technology can make managing company finances simpler. Business owners should look to automate payments wherever possible, which saves them the time that would be required to process them manually. However, care must be taken to ensure the account nominated for payments always has adequate funds.

Procrastination is also the enemy of small business owners, particularly those who are not financially astute. Many make the mistake of putting aside financial concerns to focus on the services their companies provide, leading to confusion when they need to address their finances. The best way around this is to create a schedule that allots some time each day for sifting through the financials.

Alternatively, keep in mind that many small businesses now hire professionals to handle finances. According to statistics published by the Wall Street Journal, 50 percent now have either a chief financial officer or controller. Investing in professional services is increasingly being seen as a means for simplifying and streamlining the financial aspects of small business ownership.

Methods to Value a Startup

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Value a Startup

Arthur “Art” J. Samberg is a successful investment professional with the experience of growing a $3 million dollar fund into a complex fund which had over $17 billion in managed assets in the year 2000. A graduate of MIT, Stanford and Columbia Business School, Art Samberg currently operates his family office, Hawkes Financial LLC, in New York, where he applies his investment expertise primarily in technology based start-ups.

A startup is generally defined as a small company that has recently been founded by a single individual or a small group. Startups often provide a service or product that is unique and new to the market, but tend to operate at a loss and require financing as they spend resources on expanding and testing ideas. Investors can utilize several methods to value a startup given these factors.

Cost to duplicate approach – assesses value through expenses incurred and the value of physical assets.

Market multiple approach – estimates value based on the sale of similar organizations, if possible.

Discounted cash flow approach – estimates value based on an expected future cash flow.

Development stage approach – assigns value based on the likelihood of a startup’s path to profitability.

Advice for First-Time Business Owners

Art J. Samberg founded the first Pequot hedge fund in 1986. From there, he went on to become something of a legend in the investment space. Columbia Business School, his alma mater, opened the Arthur J. Samberg Institute for Teaching Excellence in recognition of generous donations he made in 2002 and 2006. Today, Art Samberg presently manages Hawkes Financial Services LLC, his family office.

First-time business owners tend to suffer from overzealousness; after identifying an opportunity, they rush in, determined to make it work. Unfortunately, most of these business owners fail to capitalize on such opportunities; they saw only the opportunity without fully understanding the area in which it lay. Never build a business on a foundation of trendiness or prospective profits. Entrepreneurs should set out to innovate or add to an industry they know intimately.

Prepare a business plan, but be ready to put out fires. No plan can account for every eventuality. Oftentimes, the difference between good and great business owners comes down to how they react in the face of unforeseen chaos.

Inevitably, first-time business owners will cross paths with an investor. Prepare for these once-in-a-lifetime encounters by formulating an elevator pitch, a 30-seconds-or-less explanation of the business or product they have to offer and why it will change the world. A good pitch should also encompass the business’ objectives and how the owner intends to go about achieving them.