Bruce R. Bent

Bruce R. Bent
Nationality American
Alma mater St. John's University
Occupation Chairman, Double Rock Corporation
Years active 1970-current
Known for Co-creator Money market funds

Bruce R. Bent is an American businessman credited with inventing the world's first money market fund, the Reserve Fund, with Henry B. R. Brown in 1970. This financial product was recognized by the American Museum of Financial History, an affiliate of the Smithsonian Institution, for its importance and impact on the nation's financial history.[1] Whilst wholesale 'money was bought and sold' before the Reserve Fund, Bent introduced a formal discipline and developed 'rules' for this 'game'. The result is an entire industry now worth more than US$3.0 trillion, serving tens of millions of investors.[2]

In the book One Up on Wall Street, published in 1989, Peter Lynch had wrote that "there ought to be a monument to Bruce Bent and Henry B.R. Brown" in regards to their role in inventing the money market fund.[3]

Early life and education

Bent was born and raised in Great Neck, New York. He attended St. Aloysius School and graduated from Great Neck North High School. After high school Bent worked as a mail clerk and carrier at the Great Neck Post Office and served in the Marines before attending St. John's University. Bent graduated with a bachelor's degree in economics from St. John's in 1961.[4]

Career

Bent started his Wall Street career as a managing partner at LF Rothschild and Company Inc. Two years later, he began working at the pension firm, TIAA-CREF, where he met his eventual business partner, Brown. In 1968, the pair created their own firm, Brown & Bent. In August 1969, while brainstorming about investment vehicles, Bent posed the idea for a mutual fund that could offer rates of return while allowing for zero market risk.[5] The idea was to give investors immediate liquidity and safety for their money above all else.

In 1970, the firm launched its first money market fund, the Reserve Fund, to provide effective cash management, a dollar back for every dollar invested and beyond that a reasonable rate of return.[6] The fund was launched with no sales force or advertisements, and instead relied on phoning investment advisers and handing out brochures. In January 1973, the New York Times published an article about their firm and by the end of the year it had $100 million in deposits.[5] Brown left the company in 1985, but maintained stock in half the business. In 1999, Bent bought out Brown's stake in the company and continued to run it with his sons.[3]

The Reserve Primary Fund ceased operations on September 17, 2008 in relation to the collapse of the Lehman Brothers.[7][8]

Politics

In 2001, Bent was the Republican candidate for Nassau County Executive. Before he was chosen as the Republican candidate, he received the endorsement of the Conservative Party and ran with little assistance from the county's Republican Party. Promising to improve the county's financial situation and work for a salary of $1 a year, he lost to Democratic candidate Tom Suozzi.[4]

Personal life

Bent has two sons with his wife Nancy.[3] In 1980, he endowed Bent Hall, a seat of the St. John's University College of Business.[6] Bent serves as a Trustee Emeritus for St. John's University, where he is also a member of The Founders Society.[9][10] He has also given guest lectures at New York University, The Wharton School, and Harvard University.[11]

See also

References

  1. ↑ "Shen Yun's Details and Sophistication Delight and Impress". The Epoch Times. March 14, 2016.
  2. ↑ Stewart, James (September 21, 2009). "Eight Days". The New Yorker.
  3. 1 2 3 Stecklow, Steve; Gullapalli, Diya (December 8, 2008). "A Money-Fund Manager's Fateful Shift". The Wall Street Journal.
  4. 1 2 Cooper, Michael (February 25, 2001). "He's Rich and Has No Fear of Commitment". The New York Times.
  5. 1 2 Weber, Bruce (August 14, 2016). "Henry B.R. Brown, Who Opened Money Markets to Masses, Dies at 82". The New York Times.
  6. 1 2 "Bruce Bent Recognized as Visionary of Mutual Fund Industry". Manhasset Press. November 11, 2011. Archived from the original on December 5, 2012.
  7. ↑ Popper, Nathaniel; Silber-Greenberg, Jessica (November 12, 2012). "Money-Market Pioneer and Son Cleared of Fraud". The New York Times.
  8. ↑ Tymkiw, Catherine (November 12, 2012). "Pioneer of Money Market Funds Cleared of Fraud". CNN Money.
  9. ↑ "Board Emeriti". St. John's University.
  10. ↑ "Bruce Bent Honored For Revolutionizing Investment World" (PDF). St. Johns University Magazine. Winter 2012: 47.
  11. ↑ "Bruce R. Bent". Double Rock.
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