| Allan Neil Weiss | |
|---|---|
| Born | February 25, 1959 Nyack, New York |
| Nationality | American |
| Alma mater | Brandeis University (B.A. in Computer Science and Physics 1981) Yale (M.A. in Management 1989) |
| Occupation | CEO/Co-founder, Case Shiller Weiss, Inc. CEO/Co-founder, Macro Securities CEO/Founder, Market Shield Capital, LLC |
| Known for | S&P Case-Shiller Home Price Index, CASA |
Allan Neil Weiss (born Nyack, New York, February 25, 1959) has spent his career as an innovator in the areas of asset pricing, asset allocation and risk management. In 1991 he co-founded Case Shiller Weiss, Inc.[1] and served as its CEO from inception to its sale to Fiserv in 2002. CSW is the creator of the Standard & Poor Case-Shiller Index. Weiss co-founded MacroSecurities in 1999. In 2006 he founded Market Shield Capital, LLC and serves as its CEO.
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Weiss received his B.S. in Computer Science and Physics from Brandeis University in 1981, and his MBA from Yale University in 1989. He co-founded Case Shiller Weiss in 1991 to fill a gap in market awareness of ongoing price changes in residential real estate. He accomplished this by translating a highly regarded academic paper on a new indexing technique into a nationally recognized home price indexing standard, now known as the S&P Case-Shiller Index.
Following the establishment of the indexes, Weiss lead CSW’s development of forecasts of the Case-Shiller Indexes which were published in The Wall Street Journal for over five years. CSW also licensed the indexes and forecasts to mortgage investors used to price transactions involving over $50 billion of residential mortgages.
In 1993 he co-authored a paper with Karl Case and Robert Shiller “Index-Based Futures and Options Markets in Real Estate”,[2] published in the Journal of Portfolio Management. The paper defines and analyzes a method to hedge and invest in home prices. In 2004 this proposal became a reality when the Chicago Mercantile Exchange launched home price futures based on the Case-Shiller Indexes.[3]
In 1995 Weiss conceived of a novel approach to automated real asset valuation and lead the CSW team to develop the CASA automated home valuation service.
In 1997, Weiss conceived of a new financial structure enabling equity market investors to hedge or invest in home prices and other economic indexes. Weiss named the structure the Proxy Asset Data Processor and along with Shiller received two US patents, 5987435[4] and 6513020,[5] for these inventions. Weiss along with Robert Shiller founded Macro Securities[6] to commercialize this invention. Securities under these patents have traded on the American Stock Exchange (UOY and DOY) [7] and the New York Stock Exchange (UMM and DMM).[8]
Weiss also identified a major uninsured home-ownership risk: loss of home value due to market declines. In 1999 in collaboration with Robert Shiller, he published "Home Equity Insurance"[9] in the Journal of Real Estate Finance and Economics.
The sale of Case Shiller Weiss, Inc. to Fiserv caused Weiss to observe the extent to which smaller assets are worth less, for each dollar they earn, than larger more liquid assets; therefore liquid assets generate lower income per dollar invested. Seeing how much the owners of the smaller assets could benefit from higher prices if some of their cash flows were aggregated into a larger more liquid fund, Weiss patented Common Index Securities – US patents 7155468[10] and 7716106[11] – that allows for the creation of financing structures that generate liquid and therefore value enhanced investments by aggregating cash flows from these smaller assets. This solution applies to any asset class whose value or earnings can be reliably indexed.
In 2007 Weiss formed Market Shield Capital to commercialize his Common Index Securities patent portfolio. Thus far Weiss has lead Market Shield to create Multifamily Indexed Equityl (MFIQ) and Residential Indexed Equity Fund (ResIQ), each of which provide new structures for investment in their respective asset classes. These structures enable asset owners to retain all of the asset specific upside while reducing some of the market level risk, since payments to investors decline alongside a decline in a defined index for the overall health of the market. Investors receive higher returns when the defined market index improves. In addition investors are not subject to asset specific volatility beyond outright bankruptcy.
Following the financial crisis of 2007-2010, and the massive deflationary pressures and equally massive governmental monetary and fiscal interventions, Weiss saw the need for an effective hedge against both inflation and deflation. Early in 2010, he created a solution, the CPIQ Fund, which invests in liquid securities by employing an econometric model he developed. The CPIQ fund is designed to generate a return that is a multiple of inflation/deflation with low relative volatility.
2010 “Computer-Implemented Method for Providing Inflation-Based Equities”, Patent Pending 2010 “Common Index Securities”, U.S. Patent#7,716,106, 2010 2006 “Common Index Securities”, U.S. Patent #7,155,468, 2006 2003 “Proxy Asset Data Processor” (with Robert Shiller), U.S. Patent #6,513,020, 2003 1999 “Proxy Asset Data Processor” (with Robert Shiller), U.S. Patent #5,987,435,1999
“Moral Hazard and Home Equity Conversion" Real Estate Economics, Vol. 28, No. 1, 2000.[see CFDP 1177, CFP 1015]
"Evaluating Real Estate Valuation Systems" Journal of Real Estate Finance and Economics, (1999) 18(2):147-61. [CFP 983]
"Home Equity Insurance" Journal of Real Estate Finance and Economics, 19:1, 21-47, 1999. [see CFDP 1074, CFP 1007]
“Mortgage Default Risk and Real Estate Prices: The Use of Index-Based Futures and Options in Real Estate” 1995, NBER Working Papers 5078, National Bureau of Economic Research, Inc.
"Index-Based Futures and Options Markets in Real Estate" Journal of Portfolio Management (Winter 1993). [CFDP 1006]