Robert Haugen
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| Robert Haugen | |
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| Born | June 26, 1942 Chicago, Illinois, USA  |
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| Education | University of Illinois at Urbana-Champaign |
| Occupation | Academic, Entrepreneur |
Robert (Bob) Arthur Haugen (born on June 26, 1942, in Chicago, Illinois) is a renowned professor of theoretical finance. He is currently retired from academics and is the president of Haugen Custom Financial Systems.
Haugen obtained his B.S. degree from the business school at the University of Illinois at Urbana-Champaign. Haugen proceeded to obtain an M.S. and then a PhD in finance at the University of Illinois at Urbana-Champaign.
[edit] Career
After graduating, Haugen accepted an offer as a professor at University of Wisconsin-Madison. While at the University of Wisconsin-Madison, he published a paper in real estate discrimination that became widely used in the academic world. He also became involved in the Finance Society. Haugen's first major book, coauthored by two colleagues, Amir Barnea and Lemma Senbet, was Agency Problems and Financial Contracting published in 1984. In this book he explained how personal compensation issues affected financial deals.
Haugen went on to accept a new position at the University of Illinois at Urbana-Champaign. While there, he was working on two books. He was also working on another short book with his co-author Josef Lakonishok, about the "January effect" in the stock market. Research seemed to show that, on average, all of a portfolio’s abnormal return (that is, returns in excess of that predicted under an equilibrium pricing model, like the CAPM) was made in January, especially during the first two weeks of the month.
He went on to a new position at the University of California at Riverside, but soon left and joined the University of California at Irvine. Haugen continued on his research, and his relationship with NISA (National Investment Services of America). He also lectured internationally on Modern Finance, including the Amsterdam Institute of Finance, where he taught for 10 years. Haugen served on the Board of Directors for a variety of concerns.
He published the first academic article documenting the nature and power of the expected return factor model in The Journal of Financial Economics in 1996. He explains the model in his text The Inefficient Stock Market—What Pays Off and Why. Using a computerized application of his model, he created Haugen Custom Financial Systems, a company that provides institutional clients with expected returns for 8000 stocks worldwide. Over 80 billion dollars are managed using his quantitative methodology.[citation needed]
[edit] Selected publications
- Agency Problems and Financial Contracting
- The New Finance
- Modern Investment Theory (1st edition), 1984
- The Incredible January Effect: The Stock Market's Unsolved Mystery (co-authored with Josef Lakonoshuk), 1992
- Beast on Wall Street, 1998
- 'The Inefficient Stock Market—What Pays Off and Why, 2001
- The New Finance: Overreaction, Complexity and Uniqueness (3rd Edition), 2003
