Tag Archives: finance

Foster students manage the business end of the UW’s EcoCAR Challenge

UW's eco carA team of UW students recently took second place in the EcoCAR 2 Challenge. Its modified Chevy Malibu traveled 48 miles on an electric charge before switching to its biodiesel engine—making it the most energy-efficient car in the 15-school international competition. A brilliant feat of engineering.

Behind that engineering was some savvy business support from Foster School students. Nicholas Wilson (MBA 2012), Tyler Rose (MBA 2013) and Taj Matthews (MBA 2013) served as business managers for the first stages of the three-year project. Alex Ong, a senior studying finance, took the engineering and design team through to the finals earlier this year at General Motor’s Milford Proving Ground.

The son of engineers, Ong has no formal technical training of his own. “But I’m interested in cars and I knew a few things,” he says. “Enough to get the conversation going.”

His role was to manage the project’s six-figure budget, cultivate and communicate with sponsors, and provide financial reporting to funders and competition organizers—GM, the US Department of Energy, and a wide range of transportation and renewable energy firms and organizations.

In Detroit, the team finished first in eight categories, including quickest acceleration, lowest energy consumption and least greenhouse gas emissions. While his colleagues put the car through its paces, Ong presented the team’s financials to a panel of judges representing the sponsor organizations.

It was a unique experience, this working collaboration of engineering, business, communications and visual arts.

“There’s nothing like it at the UW,” Ong says. “It was an incredible interdisciplinary learning experience where you had to work together with people who have no knowledge of your expertise and vice-versa. Otherwise, the whole project falls flat.

“That’s about as real world as it gets.”

The UW has been selected to compete in EcoCAR 3 beginning this fall. Ong plans to recruit fellow Foster students to better distribute the workload and formalize procedures to ensure continuity over the project’s four-year run.

The team just learned that they get to play with a Camaro this time around.

Senioritis? Bah. Count Ong in.

Undergrads trek to San Francisco to network with employers

Guest post by Zak Sheerazi, assistant director of career development, Undergraduate Career Services

On August 26 and 27, Foster Undergraduate Career Services took a group of students to San Francisco to visit seven companies. This group of Foster students consisted of finance/accounting majors  interested in working in the Bay Area after they graduate.

Each company visit entailed an overview of the company and provided students the opportunity to network with company representatives. During this two-day trek we also had a San Francisco alumni networking night. Roughly 60 Foster alumni from the San Francisco area met up to network with each other and our current students.

Amy Li, accounting/finance major, had this to say about her experience on the trek, “It was a great opportunity that enabled students to have direct interaction with employers and to learn about their jobs from different perspectives. Communication is an essential skill in career development, thus through this form of networking event, we not only explored the diverse career paths we could choose from but also had the chance to build and present our personal brand.”

We would like to send a special thanks to the employers who participated in the SF Trek: Deloitte, EY, KPMG, Piper Jaffray, Prudential Capital, PwC, and Vaquero Capital.

San Francisco Trek
Photos from the company visits and networking night on the San Francisco Trek.

Leaning… forward

Zevenbergen

Nancy Zevenbergen, Leslie Tubbs and Brooke de Boutray lead a proudly perceptive, fiercely aggressive Seattle investment firm

Nancy Zevenbergen (BA 1981) recalls a childhood visit to her uncle George Zoffel’s (BA 1956) credit reporting firm where she found him and his business partner at the front desk reading the Wall Street Journal while a legion of ladies typed credit reports in the back. The image made an impression.

“I thought, if I never learn to type, maybe I’ll get to sit up front and read the Journal someday,” she recalls with a laugh.

That little girl with big ideas is now president and chief investment officer of Zevenbergen Capital Investments, a finance firm of her own making. She and partners Leslie Tubbs (BA 1982) and Brooke de Boutray (BA 1977) manage $3 billion in assets, boldly invested in companies on the uphill slope of significant and sustainable growth.

And they are good, consistently—and sometimes spectacularly—beating the benchmark Russell 3000 Growth Index.

The hard way

Each of these Foster finance alumnae forged her own path via banking—Zevenbergen at Rainier National, Tubbs at Key, and de Boutray at First Interstate—to the men’s club of investing. “In our first jobs,” Zevenbergen recalls, “the glass ceiling was thick.”

So she created her own job. After six years in trust investment, Zevenbergen launched ZCI headlong into the market crash of 1987.

“It was a terrible year,” she says. “But a perfect year to start the firm, because it was the equalizer that decimated everyone. People realized that their money was no safer in a 100-year-old investment firm than it was with an independent asset manager like me.”

Zevenbergen started level, but quickly demonstrated her advantage. And ZCI grew rapidly. In 1992 she hired de Boutray, whom she had met while both studied for their CFAs. She convinced Tubbs, a sorority sister at the UW, to join in 1994.

Cut loose from the strictures of Big Finance, the team was free to invest on its own terms.

Game changers

Zevenbergen says it feels strange reflecting back on a firm that’s perpetually looking forward. ZCI is the aggressive piece of clients’ investment portfolios. Growth is their game.

“Investing is both an art and a science,” says de Boutray. “Because we are growth managers, we open our minds to what can be as opposed to what happened in the past. This approach has served us well.”

This means relying less on historical analysis and more on assessing opportunity. “We’re not venture capitalists,” Zevenbergen adds. “But we share their focus on the people, the concept and the addressable market when we’re consider investing in a company.”

“We look for game changers.”

Among them, Microsoft, Starbucks, Amazon, Apple, Tesla, Netflix, Facebook, Zillow, Google, Chipotle, LinkedIn, Qualcomm— each bought early and held until the waning of growth.

Aside from impeccable timing, the secret to ZCI’s success may be its powers of perception. The women of Zevenbergen Capital are proud of their success in the testosterone world of growth investing. They both accept and embrace their difference from other firms. “It’s Venus and Mars,” Tubbs says.

While men in finance tend to be more analytical, more driven by ego, she says, “we collaborate, listen, observe. These are clichés, but they are also our competitive advantage.”

Where are the women?

Having blazed a considerable trail in finance—especially in the Northwest— Zevenbergen, Tubbs and de Boutray have lately been wondering why they don’t see more young women entering their industry or other male bastions of computer science, engineering and mathematics.

They’ve decided to stop asking and start acting. ZCI has created a number of ARCS Fellowships to promote science-related careers at the UW. They’re also offering internships to Foster students and recently endowed a scholarship fund to support undergraduate women studying finance.

“We believe that funding education brings a richness to our community,” Zevenbergen says. “Instead of just asking where are the women, we want to do something about it.”

Investing in life

Gary Furukawa (BA 1981) is the chief investment officer for Freestone Capital Management, a wealth management firm. Recently, he spoke at the Foster School about his career path, gave an overview of the financial markets and shared his personal insights on a range of topics, including what Freestone looks for in potential employees, books to help you develop your own investing framework and more.

Furukawa started his career with Deloitte & Touche in Seattle as a Certified Public Accountant. In 1982, he joined Smith Barney as a financial consultant, eventually rising to senior vice president. In 1999, he founded Freestone. He has been a highly successful investor along the way, investing in a wide variety of asset classes: distressed real estate (1980s and again after 2008 crisis), private equity (early 1990s) and thrift conversions (1988-present). He was also an original angel investor in Amazon.com and aQuantive.

Top insights from Furukawa’s talk:

  • Most useful courses he took at the University of Washington: English/writing courses, sociology and psychology courses and behavioral finance courses. Furukawa said, “Learning about the flaws in the way you think is very powerful and will help you make better decisions.”
  • Your life = the sum of your decisions.
  • Through your education, you should try different things until you find something you really like. It should be something you have the potential to be good at.
  • Self-knowledge, obtained through reading, thinking and life, is the most important knowledge. Learning really starts after you graduate from college.
  • Wealth is primarily created three ways (in the U.S.): owning a business or owning stock in a successful business, owning real estate for a long time or inheriting money.
  • Your pay check funds your lifestyle, but in order to build wealth you have to save and invest your money.

Watch video highlights, which include his ideal employee traits, investment lessons, recommended reading and life insights.

Gary Furukawa was one of UW Foster School of Business Dean Jim Jiambalvo’s guest speakers at the annual Leaders to Legends Breakfast Lecture Series, which include notable leaders in an array of industries from greater Seattle and around the country.

San Francisco Trek

San Francisco Trek 2013

Foster Undergraduate Career Services team understands the importance of giving our students opportunities to engage with employers outside of the Seattle area. With that said, we are happy to report that Foster Undergraduate Career Services had the opportunity to take a group of Foster students to San Francisco to visit five companies. This group of Foster students consisted of finance/accounting majors who are interested in working in the bay area after they graduate. Each visit entailed an overview of the company, in-addition to students getting the opportunity to network with company representatives. During this two-day trek we also had a San Francisco alumni networking night, where we had roughly 40 Foster alumni from the San Francisco area meet up to network with each other as well as our current students.

When we asked some of the students who attended this trek what they liked best about it, here is what they had to say:

“I loved the networking night at Thirsty Bear. It was beyond helpful to socialize and talk with all the alumni. They were beyond helpful and interested in answering all of our questions.”

“I met several great companies that are on my target company list. These companies let their partners, managers and seniors share their work experience. That is very helpful to me. I knew more about these companies and got in touch with people there.”

“Going to the companies and learning about what is out there was definitely the most valuable part of the trip for me. In addition to and along with that, getting the chance to connect and meet with professionals in the field, particularly the UW grads, was great.”

The companies that we had the opportunity to visit on that two-day trek were:

Educated quest

After proving herself on Wall Street, Kate Kingen is out to reform America’s schools

Kate Kingen

It is likely that no young finance prodigy has ever followed up a promising analyst program at a prestigious Wall Street firm such as Deutsche Bank by going to work for the Newark Public Schools.

Until Kate Kingen (BA 2009).

But then, Kingen has never followed a script. The daughter of Seattle restaurateurs (Red Robin, Salty’s) chose to study accounting at the University of Washington Foster School of Business, earning the Most Outstanding Accounting Graduate Award at the top of a long ledger of accolades. But when an internship with Deutsche Bank’s Mergers & Acquisitions group turned into a job offer, she packed her bags for New York City.

Finance phenom

The analyst program is Wall Street’s trial by fire for the elite young members of a testosterone-fueled fraternity of high finance—“mainly male, very aggressive,” asserts Kingen.

Those who survive write their own ticket. Kingen thrived.

She rocketed to the top of her class at Deutsche Bank, and was named lead analyst on a number of marquee deals, most notably the $9.7 billion announced merger of Deutsche Boerse and NYSE and the $8.8 billion sale of Bucyrus to Caterpillar.

When she emerged triumphant from this two-year crucible, a gold-plated career at an investment bank or hedge fund or private equity firm was hers for the taking.

But Kingen had something more in mind. “I really enjoyed the experience and learned a lot,” she says. “But I wanted to apply my finance skills where they could make the most impact.”

Something more

Kingen had been raised to revere education. So when she was invited by the new chief operating and financial officer of the Newark School District—a Morgan Stanley veteran named Photeine Anagnostopoulos—to help implement sweeping reforms in finance, operations and strategy, Kingen jumped at the opportunity.

“If I wanted to be part of the coming change in education,” she says, “there’s no better place to start than Newark.”

After a 360-degree analysis of one of the nation’s poorest-performing districts, their team cleaned up the nearly $1 billion budget and closed under-enrolled schools. Kingen introduced a more equitable funding model that gives principles more autonomy and developed a graduation tracker that now allows parents, teachers, and students to monitor academic progress.

Going to state

With knowledge of their breakthrough work in Newark, the New Jersey Commissioner of Education hired Anagnostopoulos and Kingen to analyze the critical links between funding and performance across the state. They’re currently studying a cross-section of districts in search of the best practices that can be replicated elsewhere in the state.

“Most studies and reform efforts are focused on instruction—as it should be,” Kingen says. “But I believe that connecting finance and resource allocation to performance is going to be the next big step in education reform.”

Systems education

More than just some quixotic idealist tilting at academic dysfunction, Kingen may be onto something big.

The past year’s efforts are revealing a possible new paradigm: an interdisciplinary “systems” approach to education management that marries the wisdom of pedagogy and social science with the insights of data analytics, organizational behavior, accounting and finance. Its potential to improve student performance is transformational.

Once her work in New Jersey is complete, Kingen is planning to go for an MBA. She’d also like to start a company in this new area of expertise. “When you’re in education reform, you’re working against the clock,” she says. “Because every day you don’t make progress is another day lost for a child. So we need to keep pushing to make these changes.”

It will take some serious pushing. But Kingen—experienced, smart, energetic, ambitious, and appropriately impatient—is more than game.

“I’ve learned that management and finance acumen are sorely missing in K-12 education,” she says. “There’s a huge opportunity. It’s exciting to be at leading edge of something so important.”

Foster finance workshop explores the ABCs of HFTs

Guest post by Jonathan Brogaard, an Assistant Professor of Finance at the Foster School

Jonathan BrogaardIs high frequency trading good or bad for financial markets? In January, the Foster School Department of Finance and Business Economics hosted a high-level summit to discuss how the increasing automation of financial markets is affecting investors, market volatility and order execution.

The discussion brought together Foster finance faculty and senior executives from local investment firms.

As an early investigator of this emerging topic in finance, I was asked to present the leading academic findings.

First, a bit of definition. High frequency trading (or HFT) is the fastest subset of computer-based algorithmic trading. HFTs act either as market makers or exploit inefficiencies in the market. They buy and sell constantly, hold very little inventory at any given time, and end each day with zero positions. In short, they run a volume business, picking up fractions of a penny over and over and over again. This leads to regular—and sometimes extravagant—profitability.

But HFTs are shrouded in mystery. Little is known about these firms and their algorithms that dominate market trading. HFTs are obtuse and generally unregulated. And they have been linked to scary events such as the flash crash of May 6, 2010.

A small group of academics, including myself, study the effect of HFTs on market quality—how well markets operate. The consensus of our findings is that, on average, HFTs are improving the quality of markets. That is, they are adding to price discovery (making prices more informative), increasing liquidity (making more shares available to be bought and sold), and decreasing spreads (the price difference between what a buyer and a seller will pay).

But what are traditional investors experiencing in the markets? Our workshop guests voiced a variety of opinions on HFTs, and shared experiences that will help me and other researchers fine-tune our measurements to better reflect the realities of an increasingly computerized market.

We certainly share their concerns about the lack of understanding around high frequency trading. We have much to learn. Do HFTs increase or decrease the risk of flash crashes? What is their presence doing to investor confidence? Are they beneficial in the market for smaller stocks?

We tend to fear what we don’t know. But high frequency trading is certainly here to stay. So we’re working diligently to shed light on this powerful new force in the financial markets.