James O'Shaughnessy
Encyclopedia
James P. O'Shaughnessy is an American
investor
and the founder, chairman, and CEO of O'Shaughnessy Asset Management, LLC (OSAM
), an asset management firm headquartered in Stamford, Connecticut.
O'Shaughnessy's areas of expertise include quantitative
equity analysis, portfolio management
, research decisions, and investment
models. O'Shaughnessy has authored several books that use Standard & Poor's Compustat
database to provide extensive quantitative analysis of stock market
performance. O'Shaughnessy has been awarded several U.S. patents for his investment strategies
and was recognized as a legendary investor by Forbes.com.
where he attended Saint Thomas Academy
as a youth. His fascination with the stock market began at an early age when he started to manually track characteristics common to the 30 companies in the Dow Jones Industrial Average
stock index. After studying international economics
and business diplomacy at the School of Foreign Service of Georgetown University
, O'Shaughnessy graduated with a Bachelor of Arts
in Economics
from the University of Minnesota
in 1986.
After graduating, O'Shaughnessy worked for a family-owned venture capital
firm. During this time, his interest in quantitative research was recognized by a colleague who was on the Board of Directors
with O'Shaughnessy at the St. Paul Chamber Orchestra. The colleague suggested that O'Shaughnessy's research might be well suited for pension
plan management. In 1988, O'Shaughnessy started O'Shaughnessy Capital Management, Inc. and began consulting to large pension funds and foundations.
In 1991, O'Shaughnessy moved his family to Greenwich, Connecticut
to be closer to the New York area, where most of his business was located.
O'Shaughnessy continued to apply his research of the stock market and, in 1994, his first book Invest Like the Best was published, followed by the first edition of What Works on Wall Street in 1997, How to Retire Rich in 1998, and Predicting the Markets of Tomorrow in 2006.
O'Shaughnessy started his own mutual funds under the names Cornerstone Growth and Cornerstone Value in 1996.
In 1997, the Royal Bank of Canada
(RBC) launched the RBC O'Shaughnessy mutual funds for Canadian investors. Currently, there are seven mutual funds in the RBC O’Shaughnessy funds family.
In 1999, O'Shaughnessy started Netfolio, The Personal Fund Company, to offer individual investors the ability to build their own diversified portfolio over the internet. The company was closed in 2001. As part of Netfolio’s concentration on “personal funds” O’Shaughnessy Capital Management sold their mutual fund family to Hennessy Advisors in June 2000.
In 2001, O’Shaughnessy and his team from O’Shaughnessy Capital Management moved to Bear Stearns Asset Management
(BSAM), where O’Shaughnessy served as a Senior Managing Director and the executive director
of Systematic Equity. In 2007, O’Shaughnessy reached an agreement with Bear Stearns to spin his Systematic team out of BSAM to form O’Shaughnessy Asset Management, LLC
.
O'Shaughnessy currently serves as a Vice Chairman of the Board for the Chamber Music Society of Lincoln Center.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
investor
Investor
An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...
and the founder, chairman, and CEO of O'Shaughnessy Asset Management, LLC (OSAM
Osam
The Osam is a river in northern Bulgaria. Its drainage basin is in between that of the river Vit to the west and the Yantra system to the east. The river has two main tributaries in its upper course: the Black Osam takes its source from the foot of Levski Peak in the Balkan Mountains, at an...
), an asset management firm headquartered in Stamford, Connecticut.
O'Shaughnessy's areas of expertise include quantitative
Quantitative research
In the social sciences, quantitative research refers to the systematic empirical investigation of social phenomena via statistical, mathematical or computational techniques. The objective of quantitative research is to develop and employ mathematical models, theories and/or hypotheses pertaining to...
equity analysis, portfolio management
Portfolio manager
A portfolio manager is either a person who makes investment decisions using money other people have placed under his or her control or a person who manages a financial institution's asset and liability portfolios....
, research decisions, and investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
models. O'Shaughnessy has authored several books that use Standard & Poor's Compustat
Compustat
Compustat is a database of financial, statistical and market information on active and inactive global companies throughout the world. The service began in 1962....
database to provide extensive quantitative analysis of stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
performance. O'Shaughnessy has been awarded several U.S. patents for his investment strategies
Investment strategy
In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio...
and was recognized as a legendary investor by Forbes.com.
Biography
James P. O'Shaughnessy was born and raised in Saint Paul, MinnesotaMinnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
where he attended Saint Thomas Academy
Saint Thomas Academy
Saint Thomas Academy , originally known as Saint Thomas Aquinas Seminary, and formerly known as Saint Thomas Military Academy is the only all male, Roman Catholic, college-preparatory, military high school in Minnesota. It is located in Mendota Heights near Saint Paul...
as a youth. His fascination with the stock market began at an early age when he started to manually track characteristics common to the 30 companies in the Dow Jones Industrial Average
Dow Jones Industrial Average
The Dow Jones Industrial Average , also called the Industrial Average, the Dow Jones, the Dow 30, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow...
stock index. After studying international economics
International economics
International economics is concerned with the effects upon economic activity of international differences in productive resources and consumer preferences and the institutions that affect them...
and business diplomacy at the School of Foreign Service of Georgetown University
Georgetown University
Georgetown University is a private, Jesuit, research university whose main campus is in the Georgetown neighborhood of Washington, D.C. Founded in 1789, it is the oldest Catholic university in the United States...
, O'Shaughnessy graduated with a Bachelor of Arts
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
in Economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
from the University of Minnesota
University of Minnesota
The University of Minnesota, Twin Cities is a public research university located in Minneapolis and St. Paul, Minnesota, United States. It is the oldest and largest part of the University of Minnesota system and has the fourth-largest main campus student body in the United States, with 52,557...
in 1986.
After graduating, O'Shaughnessy worked for a family-owned venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
firm. During this time, his interest in quantitative research was recognized by a colleague who was on the Board of Directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
with O'Shaughnessy at the St. Paul Chamber Orchestra. The colleague suggested that O'Shaughnessy's research might be well suited for pension
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
plan management. In 1988, O'Shaughnessy started O'Shaughnessy Capital Management, Inc. and began consulting to large pension funds and foundations.
In 1991, O'Shaughnessy moved his family to Greenwich, Connecticut
Greenwich, Connecticut
Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2010 census, the town had a total population of 61,171. It is home to many hedge funds and other financial service companies. Greenwich is the southernmost and westernmost municipality in Connecticut and is 38+ minutes ...
to be closer to the New York area, where most of his business was located.
O'Shaughnessy continued to apply his research of the stock market and, in 1994, his first book Invest Like the Best was published, followed by the first edition of What Works on Wall Street in 1997, How to Retire Rich in 1998, and Predicting the Markets of Tomorrow in 2006.
O'Shaughnessy started his own mutual funds under the names Cornerstone Growth and Cornerstone Value in 1996.
In 1997, the Royal Bank of Canada
Royal Bank of Canada
The Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
(RBC) launched the RBC O'Shaughnessy mutual funds for Canadian investors. Currently, there are seven mutual funds in the RBC O’Shaughnessy funds family.
In 1999, O'Shaughnessy started Netfolio, The Personal Fund Company, to offer individual investors the ability to build their own diversified portfolio over the internet. The company was closed in 2001. As part of Netfolio’s concentration on “personal funds” O’Shaughnessy Capital Management sold their mutual fund family to Hennessy Advisors in June 2000.
In 2001, O’Shaughnessy and his team from O’Shaughnessy Capital Management moved to Bear Stearns Asset Management
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
(BSAM), where O’Shaughnessy served as a Senior Managing Director and the executive director
Executive director
Executive director is a term sometimes applied to the chief executive officer or managing director of an organization, company, or corporation. It is widely used in North American non-profit organizations, though in recent decades many U.S. nonprofits have adopted the title "President/CEO"...
of Systematic Equity. In 2007, O’Shaughnessy reached an agreement with Bear Stearns to spin his Systematic team out of BSAM to form O’Shaughnessy Asset Management, LLC
Osam
The Osam is a river in northern Bulgaria. Its drainage basin is in between that of the river Vit to the west and the Yantra system to the east. The river has two main tributaries in its upper course: the Black Osam takes its source from the foot of Levski Peak in the Balkan Mountains, at an...
.
O'Shaughnessy currently serves as a Vice Chairman of the Board for the Chamber Music Society of Lincoln Center.
Books Authored By
- Invest Like the Best: Using Your Computer to Unlock the of the Top Money Managers, 1994, McGraw-HillMcGraw-HillThe McGraw-Hill Companies, Inc., is a publicly traded corporation headquartered in Rockefeller Center in New York City. Its primary areas of business are financial, education, publishing, broadcasting, and business services...
. ISBN 0070479844. - How to Retire Rich: Time-Tested Strategies to Beat The Market and Retire in Style, 1998, Broadway BooksBroadway BooksBroadway Books, an imprint of the Crown Publishing Group, a Division of Random House, Inc., released its first list in Fall, 1996. Broadway Books has since published many New York Times bestsellers in hardcover and paperback, including Elizabeth Edwards’ memoir Resilience, Bill O’Reilly’s memoir A...
. ISBN 0767900723. - What Works on Wall Street: A Guide to the Best-Performing Investment Strategies of All Time, 3rd Edition, 2005, McGraw-HillMcGraw-HillThe McGraw-Hill Companies, Inc., is a publicly traded corporation headquartered in Rockefeller Center in New York City. Its primary areas of business are financial, education, publishing, broadcasting, and business services...
. ISBN 0071452257. (1st Edition, 1997, ISBN 0070479852; 2nd Edition, 1998, ISBN 0070482462) - Predicting the Markets of Tomorrow: A Contrarian Investment Strategy for the Next Twenty Years, 2006, Penguin GroupPenguin GroupThe Penguin Group is a trade book publisher, the largest in the world , having overtaken Random House in 2009. The Penguin Group is the name of the incorporated division of parent Pearson PLC that oversees these publishing operations...
. ISBN 1591841089.
Commentary Authored By
- “A Generational Opportunity.” Yahoo! Finance, March 17, 2009. http://finance.yahoo.com/retirement/article/106754/Huge-Generational-Opportunity-Now
See also
- RBC Asset ManagementRoyal Bank of CanadaThe Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
- Bear Stearns Asset ManagementBear StearnsThe Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...