Max L. Heine (1911 – March 1988) was a

value investor Value or values may refer to: Ethics and social * Value (ethics) wherein said concept may be construed as treating actions themselves as abstract objects, associating value to them ** Values (Western philosophy) expands the notion of value beyo ...

and fund manager in

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Biography

A Jewish law student in Berlin, Max fled Nazi Germany in 1934 for New York, where he found work in a department store. Sometime in the late 1930s or early 1940s, Max came across the classic book on value investing, ''

Security Analysis Security analysis is the analysis of tradeable financial instruments called securities. It deals with finding the proper value of individual securities (i.e., stocks and bonds). These are usually classified into debt securities, equities, or som ...

'' by Benjamin Graham, the well-known mentor of other value investors, including

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. He decided to invest all of the money he and his new bride had in distressed railroad securities. By analyzing the value of the underlying assets (land, railroad equipment, scrap metals, etc.) and basing his calculations of total value on them, he made a large return on his modest investment. This deep value analysis became his signature approach to investing and he founded Heine Securities as an investment management company. In 1949, Heine founded the Mutual Shares fund, an open-ended mutual fund managed by his company, Heine Securities, and which is still available today as part of the

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family of funds. The focus of this and other Mutual Series funds has continued to be deep-value and distressed company investing. Under Max's leadership, the Mutual Series of funds maintained a relatively small set of exclusive investors, only managing about $5 million in 1975. They specialized in older, higher net worth clients who did not usually have financial advisors, and kept expenses low by not paying commissions or

12b-1 Mutual fund fees and expenses are charges that may be incurred by investors who hold mutual funds. Operating a mutual fund involves costs, including shareholder transaction costs, investment advisory fees, and marketing and distribution expenses. ...

"trails". The Stern School of Business at

New York University New York University (NYU) is a private research university in New York City. Chartered in 1831 by the New York State Legislature, NYU was founded by a group of New Yorkers led by then- Secretary of the Treasury Albert Gallatin. In 1832, th ...

has an endowed professorship, the Max L. Heine Professor of Finance, named after him. As of March 2007, this position is held by Edward I. Altman who has held it since 1988. Heine died in February 1988 when he was hit by a car while vacationing in

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. His obituary ran in the

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. He left behind three daughters, Doris, Karin and Peggy and four grandchildren. The reins of the Mutual Series then passed to his protogé Michael Price, who had already been a full partner in managing the company since 1982.The Oklahoma City Journal Record
Dec 12, 2005.

References

{{DEFAULTSORT:Heine, Max 1911 births 1988 deaths Jewish emigrants from Nazi Germany to the United States American financial businesspeople American investors American money managers 20th-century American businesspeople