The College of Business at UTC has recently enhanced the breadth of its academic experience with the establishment of the Haugerud-Murphy Global Finance Center. A generous gift from financiers Renée Haugerud and John H. Murphy has made the center possible, and it promises to set a standard for future excellence in financial education.
Haugerud is founder and managing principal of Galtere Ltd., a commodity-based global macro advisor with $1.3 billion under management. Murphy, a scholarship football player and alumnus of UTC, is currently developing alternative asset class products, leveraging his 20-plus year career in the insurance industry. They recently committed $2 million to UTC, with $1.5 million earmarked for the establishment of the financial center. Its creation is driven by their bold vision of a place where trading is taught in a holistic manner. Specifically, the center’s offering will reflect a female-based perspective of trading decision making, as well as a global-macro approach to investment strategy. Together, these elements will distinguish the center from other collegiate finance centers and create a truly distinctive operation that will appeal to students and finance professionals worldwide.
The incorporation of the female-based perspective of trading into the center is especially unique to this type of study, but one the donors argue is necessary for success in the global economy and in the financial services industry. In practice, this means the center will offer programs that address topics like the effects of brain chemistry on trading decisions and the psychology of marketplace behavior.
“Through Renée’s experiences in a male-dominated industry, we have identified differences that, once fine-tuned and exploited, could positively enhance the industry,” comments Murphy. “Our goal is to produce top-notch leaders in the financial industry, regardless of gender and statistical norms.” Adds Haugerud, “Our goal is not only to increase women’s representation in trading and portfolio management, but also to incorporate the best of all aspects of analysis, from brain chemistry and the psychology of trading and success to quantitative statistical analysis. The best of IQ and EQ in a diverse culture to produce superior leaders and superior results.”
Jennifer Stanley, an instructor with the university since 2007, was named project director of the center in January 2009. She is in the midst of formulating an operational plan to bring the center online by the end of the year.
“We’ve researched many schools’ financial centers, and while they all in some way teach students to trade and have well- regarded and deserved reputations, we haven’t come across one with the type of focus Renee and John desire,” says Stanley. “It is a bold vision for how we could be distinctive in what we do, and it takes time to get that done correctly. Currently, we are putting together an operating plan and an infrastructure plan in terms of design, retrofitting a 5,000-square-foot space. We’re very excited to take this bold step forward.”
According to Stanley, the finance center will play a transformative role in the life of the College of Business and the entire university. While it is finance focused, the influence of the benefactors and their interest in fostering greater diversity in financial management, gender, culture, background and experience will be evident. The center will not simply concentrate on traditional financial studies.
Haugerud and Murphy also see investing from a global-macro perspective and have expressed a desire for students to be taught this trading philosophy. Global-macro strategy emphasizes the need to understand asset performance in the context of broader economic and political trends. As such, students will be exposed to an interdisciplinary set of programs that spans beyond traditional finance, supplemented by appropriate tools and technologies.
Lisa Burke, associate professor of management, serves on the steering committee for the center and expects great things from it, although much work is yet to be done. The steering committee is considering options for academic offerings, required technology and staffing, and other critical aspects of the proposed operation.
“This project has the most excitement and enthusiasm I have seen in years,” comments Burke. “What the center represents is opportunity with a capital ‘O.’ For all students and faculty, it will be the go-to center for information, resources, connections and networks. As we define the center, opportunities will become more and more obvious. We are thinking big and grand and not constrained.”
Courses in behavioral finance and financial modeling are just two of 15 which have been brainstormed by steering committee members, and classroom instruction could be reinforced with such endeavors as seminars, learning luncheons, team-oriented exercises, field trips to Wall Street, and domestic and international internships. New tracks for concentrations or credit hours will likely be introduced as well.
“Courses could be as varied as personal finance, how men and women communicate differently, and cross-gender negotiations,” Burke adds. “The center will particularly support the growth and development of female financiers in a traditionally male-oriented industry, seeking more gender balance and helping everybody to bring their strengths together. Ethics in the financial industry are critical now, so we think we will see that in the ultimate rollout, along with business-world readiness skills beyond basic, hardcore knowledge.”
Certainly, much is expected from those to whom much has been given, and the responsibility for making the most of the financial support received from Murphy and Haugerud - whose Galtere Ltd. is the largest female-owned hedge fund in the world - is a priority for the leadership of the College of Business.
Dr. Richard Casavant, dean of the College of Business, remarked: “In a broader sense, all of our institutions here in Hamilton County and the region need to think ahead as corporations such as Volkswagen and Alstom gear up locally, and we feel very much a part of it. The top, economically, is about to be blown off the county in a positive sense, and those out in front of this will benefit the most. Murphy and Haugerud’s gift challenges UTC to raise the bar and, as a result, we’ll be playing on an international stage in a way we haven’t before. I’m excited about rising to this occasion.”
Currently working as an investment officer in capital management and investments with Unum, Emily Griffith graduated from the UTC College of Business in 2001 with a finance degree. She shares the enthusiasm for the possibilities associated with the finance center and sees it as benefiting the entire community, with Haugerud’s story as an inspiration and Stanley’s leadership as a key element in its future success.
“The center could really put UTC on the map in terms of interactive and progressive business education, particularly for a university of its size,” comments Griffith. “Enabling students to put their talent and resources into practice in this environment is invaluable to determining fields of interest, attracting future employers, and engaging with the markets. The donation is also a big and well-deserved vote of confidence in the business school, and I am impressed with and excited by many of the ideas that are being discussed by those leading the project.”
Murphy sees a world of potential at his alma mater. “The quality of education at UT Chattanooga is second to none,” he says. “As a graduate, I can tell you firsthand that you receive a well-rounded, first class experience at UTC. Don’t underestimate what we have here. UTC has a very good reputation and all the bones to be a top university, not only in the U.S., but globally.”
Haugerud shares Murphy’s enthusiasm and vision for the new center at UTC. “There is an enormous need for diversification in the financial industry,” she says. “As we travel the world, we are in contact with people from all walks of life: civic leaders, financial leaders, politicians, institutional leaders. When we mention the global financial center at UT Chattanooga, they are, without exception, excited with the notion. They often ask if it is ready, and say they know people who may be interested in attending. Like in the movie Field of Dreams, we believe that ‘if you build it, they will come.’”
“While Murphy is coming back to a place he has known and respects, having lived around the world myself, I noticed immediately the high caliber of people here and also, most importantly, a willingness to evolve - to take a chance on new ideas. I have always believed in synchronicity: when something is right you not only know it intellectually, you feel it. This Chattanooga community is among the best we have had the pleasure to be a part. We love it here and all that it offers,” says Haugerud.
Adds Murphy, “Our goal is for our great community to embrace our great local university and help it grow to its full potential. We see a future where Mocs are very integral in global financial markets.”
Soon enough, the leading edge of financial education will be resident at UTC, and the world will be on the doorstep of the university.