Robert (Bob) Arthur Haugen (June 26, 1942 – January 6, 2013) was a

financial economist Financial economics, also known as finance, is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on ''both sides'' of a trade". William F. Sharpe"Financia ...

and a pioneer in the field of

quantitative investing Quantitative analysis is the use of mathematical and statistical methods in finance and investment management. Those working in the field are quantitative analysts (quants). Quants tend to specialize in specific areas which may include derivative ...

and

low-volatility investing Low-volatility investing is an investment style that buys stocks or securities with low volatility and avoids those with high volatility. This investment style exploits the low-volatility anomaly. According to financial theory risk and return shou ...

. He was President of Haugen Custom Financial Systems and also consulted and spoke globally.

Career

While he has contributed research to the fields of

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

and equity investments, he is probably best known as a vocal critic of the

efficient market hypothesis The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted bas ...

and the Capital Asset Pricing Model (CAPM). With his former professor, A. James Heinsbr>
he discovered in the late 60s and early 70s that, contrary to the prevailing theory, low risk stocks actually produce higher returns. The resulting article bestowed on him the unofficial designation of “father of low volatility investing.” He was also the inventor of th
Expected Return Factor Model
He was vocal concerning the evidence supporting market inefficiency and documented the low volatility anomaly and other quantitative factors such as

value 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 momentum. During the academic portion of his career he held endowed professorships at the

University of Wisconsin A university () is an institution of higher (or tertiary) education and research which awards academic degrees in several academic disciplines. Universities typically offer both undergraduate and postgraduate programs. In the United States, ...

, the

University of Illinois The University of Illinois Urbana-Champaign (U of I, Illinois, University of Illinois, or UIUC) is a public land-grant research university in Illinois in the twin cities of Champaign and Urbana. It is the flagship institution of the Univer ...

, and the

University of California The University of California (UC) is a public land-grant research university system in the U.S. state of California. The system is composed of the campuses at Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego, San Franci ...

. Based on articles published in the top academic journals in financial economics, Haugen has been ranked as the 17th most prolific researcher in finance .
��Most Prolific Authors in the Finance Literature: 1959-2008”, Jean L. Heck and Philip L. Cooley table on pg. A-1. ''The New Finance'' was required reading for the

Chartered Financial Analyst The Chartered Financial Analyst (CFA) program is a postgraduate professional certification offered internationally by the American-based CFA Institute (formerly the Association for Investment Management and Research, or AIMR) to investment and fina ...

(CFA) exam. Haugen earned his B.S. (1965; '' magna cum laude''), M.S. (1966), and Ph.D. in

Financial economics Financial economics, also known as finance, is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on ''both sides'' of a trade". William F. Sharpe"Financia ...

(1968) from the

University of Illinois at Champaign-Urbana The University of Illinois Urbana-Champaign (U of I, Illinois, University of Illinois, or UIUC) is a public land-grant research university in Illinois in the twin cities of Champaign and Urbana. It is the flagship institution of the University ...

Selected publications

* ''On the Evidence Supporting the Existence of Risk Premiums in the Capital Market'', Robert A. Haugen and A. James Heins, Wisconsin working Paper Dec. 1972. * ''Risk and the Rate of Return on Financial Assets: Some Old Wine in New Bottles'', Robert A. Haugen and A. James Heins, Journal of Financial and Quantitative Analysis, 775-784 December 1975. * ''Resolving the Agency Problems of External Capital Through Options'', Robert A. Haugen and Lemma W. Senbet, 1981, The Journal of Finance, June. * ''Agency Problems and Financial Contracting'', 1985, Robert Haugen, Amir Barnea and Lemma W. Senbet, Prentice Hall, Upper Saddle River, NJ. * ''Modern Investment Theory'', 1986, revised 1990, 1993, 1996, 2001, Prentice Hall, Upper Saddle River, NJ. * ''The Role of Options in the Resolutions of Agency Problems: A Reply'', Robert A. Haugen and Lemma W. Senbet, 1986, The Journal of Finance, December. * ''The Incredible January Effect'', 1987, co-authored with Josef Lakonishok, Dow Jones Irwin, Homewood, IL. * ''The Effect of Volatility Changes on the Level of Stock Prices and Expected Future Returns,'' Robert A. Haugen, Eli Talmor, and Walter Torous, The Journal of Finance, May 1991. * ''The New Finance: The Case Against Efficient Markets'', 1995 (1st Edition), 1999 (2nd Edition), Prentice Hall, Upper Saddle River, NJ. * ''The New Finance: Overreaction, Complexity and Uniqueness'', 2003 (3rd Edition), 2009 (4th Edition), Prentice Hall, Upper Saddle River, NJ. * ''Commonality of the Determinants of Expected Stock Returns'', Robert Haugen and Nardin Baker, Journal of Financial Economics 1996. * ''Beast on Wall Street'',1998, Prentice Hall, Upper Saddle River, NJ. * ''The Inefficient Stock Market—What Pays Off and Why'',1999, Prentice Hall, Upper Saddle River, NJ.

External links

Haugen Custom Financial Systems official siteObituary
*

References

{{DEFAULTSORT:Haugen, Robert American businesspeople American consultants People from Chicago 1942 births 2013 deaths CFA charterholders Financial economists University of Illinois alumni University of Wisconsin–Madison faculty University of Illinois faculty University of California faculty