Columbia Business School Presents New Behavioral Economics Research

At one time one of the world’s top hedge fund managers and a prolific philanthropist, Arthur J. Samberg supports numerous non-profit causes through generous donations. In 2006, Art Samberg’s donation of $25 million to Columbia Business School, where he earned his master’s degree in business administration, helped the school hire 20 new professors and expand its research capabilities.

The Columbia Business School faculty conduct research in a number of areas. Andrew Hertzberg, an assistant professor of finance and economics, recently presented the results of his research on the failure of consumer households to save money for retirement. Hertzberg’s approach challenged the typical assumptions that assume the members of households have identical objectives. Allowing for a limited degree of selfishness, even in stable households, enabled him to gain insight into how the pursuit of personal desires affects saving rates.

In particular, Hertzberg found that spending on durable goods, such as cars and jewelry, crowded out savings. Overspending on these items occurs because the benefits of the items often apply primarily to one member of the household, and that individual redirects shared resources for their own benefit. In light of this trend, which exists even in the context of successful marriages and family relationships, Hertzberg suggests couples can maintain fiscal discipline by actively designing a savings plan in advance rather than passively accumulating unspent funds.


Columbia Business School Hosts Six Entrepreneurs in Residence for 2014

Arthur J. “Art” Samberg, a successful hedge fund manager and the former chairman of Pequot Capital Management, the world’s largest hedge fund in the early 2000s, contributes generously to a variety of causes. In 2006, Art Samberg donated $25 million to the Columbia Business School, where he earned his MBA. Those funds allowed the school to endow 20 professorships.

Columbia Business School operates a number of programs for students and faculty, including the Entrepreneur in Residence Program. This program, led by Professor Clifford Schorer, invites four to six businesspeople to be entrepreneurial guests each academic year. These individuals lend their expertise to members of the Columbia community in the process of starting their own businesses, whether they be faculty, staff, or students. They also help develop the school’s entrepreneurship program.

The 2013-2014 Entrepreneurs in Residence include three alumni of the school. All six of the entrepreneurs will present workshops in the spring of 2014. Individuals with Columbia University email accounts may also meet with entrepreneurs by requesting a meeting through the school’s website.

The Arthur J. Samberg Institute for Teaching Excellence at Columbia

In 2002, alumni Art Samberg presented New York’s Columbia Business School with a donation of $10 million, an amount that was then used to establish the Arthur J. Samberg Institute for Teaching Excellence. The goal of the institute is to enhance the learning and teaching experiences of its faculty members by way of quality information, resources, and carefully constructed programs of study. The initiatives focus on insight, research, and forecast and are accessible by senior, junior, and visiting faculty staff at Columbia Business School.

Orientation programs are available for new faculty members, and a mentorship program allows junior faculty to connect with more experienced members, benefitting from their knowledge and wisdom. Teaching workshops are open for public observance by the entire faculty, and the staff members engage in roundtable discussion, individual coaching, and supplying feedback on teacher performance within the classroom. In establishing the institute, Art J. Samberg was successful in creating an initiative to improve the school’s teaching quality, the ongoing benefits of which are still experienced by the faculty and the students today.

The Founding Father of Modern Day Hedge Funds

Art Samberg is the owner of Hawkes Financial, LLC, an investment company based in Katonah, New York. Acclaimed for the financial support he offers to Columbia Business School, a donation by Art J. Samberg was responsible for the establishment of the Arthur J. Samberg Institute for Teaching Excellence. Arthur Samberg is a well-respected expert in the area of hedge funds.

Alfred Winslow Jones, a reserved Australian sociology professional and intellectual, was responsible for founding hedge funds. Born in 1901 in Melbourne, Australia, Jones graduated from Harvard University in 1923 and travelled the world extensively following his graduation. After jaunts in Germany and Spain, Jones decided to pursue further study in the United States and found work as a Fortune magazine journalist. He experienced significant success after the article Fashions in Forecasting was published. This allowed Jones to quit Fortune, and in 1949 he created the first “hedged fund” together with four colleagues.

Jones was known for a measured and intellectual approach to investment; he purchased stocks with leverage and short-sold other stocks simultaneously. This daring and successful technique resulted in attention from the media, though many who tried to copy his investment strategy did not experience the same results. Today, the Jones method is more commonly known as the long/short equities model and remains a popular traditional structure for hedge funds worldwide.