Martin S. Fridson
Martin Fridson | |
|---|---|
| File:Mfridson-140-exp-Marty.jpg Martin Fridson | |
| Born | September 4, 1952 |
| Nationality |  American |
| Alma mater | Harvard University (BA - History cum laude), 1974 Harvard Business School (M.B.A.), 1976 |
| Known for | High Yield Investment Research, Inventing a well accepted criterion for distressed debt - simply it is debt that is trading over 1000 basis points above treasuries[1]. |
| Awards | Youngest Fixed Income Analyst Hall of Fame Inductee |
| Scientific career | |
| Fields | Finance, High Yield Debt |
Martin Steven Fridson (born September 4th, 1952 in Highland Park, Michigan) is an eminent American investment thinker known for his application of rigorous financial theory to the field of high yield bonds. He is also a philanthropist and prolific author in the subjects of financial reporting, financial history, and political economy. Fridson is one of the most well respected living financial professionals, often referred to as the “dean of high yield debt[2].” He lives in Manhattan's Upper West Side with his wife, Elaine Sisman.
Education
Fridson earned a B.A. cum laude in History from Harvard University in 1974 and as a result of gaining work experience during college was able to attend Harvard Business School the following semester, eventually graduating in 1976 with an MBA. He was also awarded the Chartered Financial Analyst designation in 1982.
Career
Fridson had little intention of entering the world of finance after getting an MBA(cite); however, he interviewed with Mitchell Hutchins and accepted a position as an electric utility bond trader in 1976. After Mitchell Hutchins was acquired by Paine Webber in 1977 he left with his trading group to Scandinavian Securities where he worked ultimately as an assistant vice president. In 1980 he went to Paine Webber’s Jackon Curtis arm as a vice president in credit research and fixed income investment strategy. In 1981 he joined Salomon Brothers as a Vice President focusing primarily in credit research continuing to take a high interest in the high yield debt world. At this time, high yield debt came into the sights of institutional investors as a portfolio enhancing investment and there was a great demand for quality research in the field. According to Fridson, much of the high yield analysis at the time was indistinguishable from advocacy. Realizing the opportunity for this kind of research he left for Morgan Stanley in 1984, where he began to challenge market lore and accepted practices by using statistical and econometric techniques, leading to many active trading strategies. Here he became a principal before leaving for Merill Lynch & Co. in 1989, where he was Director of High Yield Strategy until 2002. His contributions to the field of high yield debt at Merrill came from applying econometric techniques to active portfolio management strategies. While at Merrill he also documented a definitive history of the high yield debt market, which as Fridson says, “was shrouded in myth.[3].” " In 2002, he left Merrill to found his own firm, FridsonVision, which is the first independent high yield investment research company.
Fridson has also been a consultant to the Federal Reserve Board of Governors since the Ford Administration.
He has been a guest lecturer at the graduate business schools of Babson, Columbia, Dartmouth, Duke, Fordham, Georgetown, Harvard, MIT, New York University, Notre Dame, Rutgers and Wharton, as well as the Amsterdam Institute of Finance. He has served as president of the Fixed Income Analysts Society, governor of the Association for Investment Management and Research (now the CFA Institute), and director of the New York Society of Security Analysts. Currently, Fridson serves on the editorial boards of Financial Analysts Journal, CFA Digest, and Journal of Investment Management.
Awards and Recognition
- In 2000 he became the youngest person ever inducted into the Fixed Income Analysts Society Hall of Fame
- In 2002 the Financial Management Association International named Fridson the Financial Executive of the Year.
- For nine consecutive years through 2002, participants in the Institutional Investor All-America research survey ranked Fridson number-one in his category[4]. The magazine's editors dubbed him "the dean of the high yield bond market."
Criticism
- “perhaps the most well-known figure in the high yield world,” according to Investment Dealers’ Digest.
- “one of Wall Street’s most thoughtful and perceptive analysts.” according to The New York Times
- According to Barron’s, “No one brings more insight or a better reputation for integrity to the junk-bond market than Marty Fridson
- Investment manager Michael McAdams described Fridson as “a hybrid of Stephen Hawking and Studs Terkel.”
- Pensions & Investments called his satirical writing on financial markets “worthy of Jonathan Swift.”
Works by Fridson
- High Yield Bonds, 1989
- Financial Statement Analysis, 1991
- Investment Illusions, 1996
- It Was a Very Good Year, 2000
- How to be a Billionaire, 2001
- Unwarranted Intrusions, 2006
References
- ^ Moyer, Stephen G.: "Distressed Debt Analysis", page 7. J. Ross Publishing, 2004
- ^ Moyer, Stephen G.: "Distressed Debt Analysis", page 6. J. Ross Publishing, 2004
- ^ Fridson, Martin S."High Yield Bonds" Probus Professional, 1989
- ^ A Perfect Time to Buy Junk BusinessWeek Oct. 21 2002
Link to high yield, distressed debt, list of personalities on Wall Street, financial analyst hall of fame, CFA, Harvard College, Harvard Business School
Categories: Financial Analysts, Wall Street, High Yield Debt, Distressed Debt, Defaulted Debt,