Faculty Spotlight:
K.C. Ma
Director, Roland George Investments Program
Roland & Sarah George Chair of Applied Investments
B.S., Management Science, National Chiao Tung University
M.B.A., Marketing, University of Illinois at Urbana-Champaign
Ph.D., Finance, University of Illinois at Urbana-Champaign
When K.C. Ma, Director of Stetson’s Roland George Investments Program, meets with parents of prospective students, he likes to ask a question: how many of these parents imagine, once their son or daughter has graduated from college with a major in Finance, they will want their child to manage their own (the parents’) retirement accounts? Few, if any, say they think they will. In their caution and reluctance, these parents share much in common with Finance programs at other colleges and universities—they are equally unwilling to put young people in charge of managing significant assets. Stetson’s Roland George Program is different: it puts real money in the hands of student investment managers. And that is exactly what brought K.C. to Stetson.
Given the distinctive philosophy of the George Program, it’s hardly surprising that K.C.’s academic trajectory has been unique, marked by a willingness to learn from experience, embrace unexpected opportunities, and take on new risks both in and out of academia. As K.C. tells it, that trajectory is marked by three phases, each with a particular emphasis: (1) a conventional faculty position (where research informs teaching); (2) working as a professional money manager (where research informs investment decisions); and (3) a unique combination of both (where ownership of a professional hedge fund company informs work with students in the Roland George Program).
A native of Taiwan, K.C. moved to the U.S. to pursue an MBA right around the time the Georges made their initial gift to Stetson. By the time he earned the PhD, he had developed a passion for research: “it was so mentally exciting, creative, and rewarding.” By the early 90s, however, K.C. experienced a “mid-career crisis,” brought on by the feeling that academic publication was no longer as intrinsically fulfilling as before. Ripe for fresh challenges, K.C. jumped at an invitation to partner with two University of Chicago faculty members in a new money management company. As he puts it, the offer gave him the chance to put knowledge acquired through research to new—and certainly more lucrative—use.
In 1997, K.C. came to Stetson on a visiting appointment in the George Investment Program, attracted by the chance to return to the classroom with practical business experience as well as academic research to inform his work with students. He was attracted, too, by the George Program’s uncommon willingness to allow students to manage real investments. Plus, the Program sought someone with a rare combination of professional money management credentials and a demonstrated record of teaching excellence. Yet, K.C.’s initial stint at Stetson was brief—he soon received an offer he couldn’t refuse from a large hedge fund firm in Connecticut. So he moved north to learn the business of hedge funds. Several years later, K.C. established his own hedge fund and returned to DeLand as the endowed chair and director of the George Program. Asked why he would give up other opportunities to return to the classroom, his answer is simple and clear: “I believe in this system and the model of the program.”
K.C.’s days generally begin with a brief consultation with his hedge fund staff on his way to Stetson. Often, he will take some of the most challenging issues money managers are facing to the classroom—ensuring that students engage with contemporary economic realities (for example, the 2011 debt crisis in Greece). Because whatever investment choices the students make with George assets have real consequences, their deliberations are not simply theoretical exercises: as K.C. puts it, “At other universities, students are not allowed to touch money at all; as new employees in the financial industry, they will not be allowed to touch money for at least 10 years—and by then, they will have become `us’, more risk averse. The Roland George Program makes the most of a brief window in students’ senior year, when their decisions are informed by skills and education but they still retain the `animal spirits’ of youth. They are more daring, more willing to take risks, but they are also capable of informed decisions.” He adds, with the obvious pleasure of a committed teacher: “My performance isn’t even as good as theirs.”
As Roland George foresaw, the model works: not only has the George investment fund grown from 568K to over 3 million, but during the past decade students have won nine first place (and two second place) awards in Equity Value and Fixed-Income categories of the National RISE competition. In Spring 2011, George Program students also participated in the first annual Global Asset Management Education Forum, where they took first place in the Fixed Income category. Further, as semi-finalists in the Global Investment Research Challenge, they had the privilege of attending the North American Investment Research Challenge, where they had the chance to meet with Warren Buffett.
The real-world stakes of the George Program place unique demands upon students. As K.C. makes clear, excuses students might use in other classes just won’t fly in the George Program, because of the fiduciary responsibilities the students assume. Indeed, K.C. lives the core philosophy he imparts to students—namely, that taking responsibility for other people’s investments is a “lifestyle choice”; it requires time, energy, and commitment 24/7, not just from 9-5 or during the hours spent in class. Toward that end, he tells each new group of George students that they can’t be late for class, and to drive home the message he literally locks the door the first week or so (even if all the students have arrived early and already taken their seats). Yet, K.C. clearly inspires more affection than fear: recently, he was running uncharacteristically late (he makes a point of arriving to class at least 5 minutes early) and reached the classroom 2 minutes late. The door was locked, but through its glass window, K.C. looked in upon a room of cheerful faces. Despite his tardiness, the students let him in.
Karen Kaivola, October 2011