Frederick S. Mates

Frederick S. Mates, aka Frederic Mates, founded in August 1967 the Mates Investment Fund, a high-flying mutual fund during the 'Go-Go' 60s that later crashed in the bear market of the early 1970s.[1] Mates ran his fund from an office he dubbed the "kibbutz" and with a young staff he called his "flower children".[1] Mates put most of his fund into a letter stock known as Omega Equities. Mates in determining his funds assets assigned a value to the barely traded Omega of $16 a share, while having purchased the stock at $3.25 a share. Mates got into trouble over this practice which was routine in the 1960s and not uncommon even today, of accounting for letter stocks at a price different from what was paid for it. As a result, when confidence was lost in Mates' mutual fund and investors wanted to cash out, redemptions had to be suspended for a while, which the U.S. Securities and Exchange Commission condoned.

The Mates Investment Fund was ahead of its time in one respect: it ostensibly promoted "Socially Responsible" mutual funds (not investing in armaments, cigarettes, or pollutants), which later was successfully promoted by the Calvert family of mutual funds.

Mates was born in Brooklyn and graduated from Brooklyn College in 1954. According to a New York Times obituary, Mates died in Kansas City on December 25, 1982.[2]

See also

Notes

  1. 1 2 Brooks, John (21 September 1999). The Go-Go Years: The Drama and Crashing Finale of Wall Street's Bullish 60s. John Wiley & Sons. p. 267. ISBN 978-0-471-35755-1.
  2. ↑ "Frederic S. Mates, 50, Mutual Fund Executive". The New York Times. December 30, 1982. Retrieved 14 August 2014.

References

  • John Brooks Wiley. The Go-Go Years: The Drama and Crashing Finale of Wall Street's Bullish 60s. New Ed edition (September 10, 1999) Excerpt
  • Roger Lowenstein. Buffett: The Making of an American Capitalist. Random House 1995. ISBN 0-679-41584-X
  • Returns for illiquid holdings in mutual funds are overstated study by Nicolas Bollen and Veronika Pool
  • Time magazine Mates Checked Jan. 03, 1969
  • Valarie Mates on Google Answers


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