Gary P. Brinson
Encyclopedia
Gary P. Brinson is a former investor and money manager. He is the founder of Brinson Partners a Chicago-based asset management firm acquired in 1994 by Swiss Bank Corporation
, the predecessor of UBS. Prior to retiring in 2000, Brinson would run the asset management division of Swiss Bank Corporation
and later UBS Global Asset Management.
He is the co-author of two books on global investing and has authored numerous articles on an array of investment topics. Brinson has been called one of the investment field's "Living Legends" alongside investors such as George Russell, Jr., Warren Buffett
, and Bill Gross.
in 1943. His father worked as a bus driver and his mother worked at Sears as a clerk. He graduated from Seattle University
in 1966 and would go on to receive an MBA from Washington State University
in 1968.
Brinson entered the investment management
business in the late 1960s as an analyst at Travelers Insurance Company. In 1979, Brinson left Travelers to join the trust department of First National Bank of Chicago as chief investment officer. By 1981, Brinson had assembled the team that would become First Chicago Advisors and later Brinson Partners.
First Chicago Advisors became a separate money management company in 1983. Through the 1980s, Brinson established himself as a pioneer in the development of the theory of asset allocation
Brinson pushed for allocation across stocks, bonds, cash, real estate, venture capital and other alternative asset classes using simple cost effective investment strategies. This would largely became conventional wisdom among money managers in the 1990s.
In 1989, Brinson led a $100 million management buyout
of his firm from First Chicago Corporation, acquiring approximately 75% of the company with a large group of partners and investors. Over the next five years built up the firm to approximately $36 billion of assets under management
. Brinson focused on providing access for U.S. institutions to global markets. The firm, which also managed a series of mutual funds, had emerged as one of the largest managers of pension plans in the U.S.
In 1994, Swiss Bank Corporation
was in the midst of a series of acquisitions that included O'Connor & Associates
, S.G. Warburg & Co., Dillon Read & Co. and culminated in the bank's merger with the Union Bank of Switzerland in 1998. Swiss Bank announced the acquisition of Brinson Partners and brought in Brinson to run the bank's asset management unit. Swiss Bank Corporation
paid $750 million to acquire Brinson Partners, resulting in a profit to Brinson and his partners of $460 million on the sale of their 75% stake in the company.
Following the acquisition of Brinson Partners, Gary Brinson ran Swiss Bank's asset management business and after the merger with UBS, Brinson was named chief investment officer of UBS Global Asset Management.
Brinson retired from UBS in early 2000 just prior to the crash of the dot-com bubble
. Brinson had grown disenfranchised over the previous years with the runaway internet bubble and its detachment from fundamentals and value investing
.
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
, the predecessor of UBS. Prior to retiring in 2000, Brinson would run the asset management division of Swiss Bank Corporation
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
and later UBS Global Asset Management.
He is the co-author of two books on global investing and has authored numerous articles on an array of investment topics. Brinson has been called one of the investment field's "Living Legends" alongside investors such as George Russell, Jr., Warren Buffett
Warren Buffett
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is...
, and Bill Gross.
Career
Brinson was born in Seattle, WashingtonSeattle, Washington
Seattle is the county seat of King County, Washington. With 608,660 residents as of the 2010 Census, Seattle is the largest city in the Northwestern United States. The Seattle metropolitan area of about 3.4 million inhabitants is the 15th largest metropolitan area in the country...
in 1943. His father worked as a bus driver and his mother worked at Sears as a clerk. He graduated from Seattle University
Seattle University
Seattle University is a Jesuit Catholic university located in the First Hill neighborhood of Seattle, Washington, USA.SU is the largest independent university in the Northwest US, with over 7,500 students enrolled in undergraduate and graduate programs within eight schools, and is one of 28 member...
in 1966 and would go on to receive an MBA from Washington State University
Washington State University
Washington State University is a public research university based in Pullman, Washington, in the Palouse region of the Pacific Northwest. Founded in 1890, WSU is the state's original and largest land-grant university...
in 1968.
Brinson entered the investment management
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
business in the late 1960s as an analyst at Travelers Insurance Company. In 1979, Brinson left Travelers to join the trust department of First National Bank of Chicago as chief investment officer. By 1981, Brinson had assembled the team that would become First Chicago Advisors and later Brinson Partners.
First Chicago Advisors became a separate money management company in 1983. Through the 1980s, Brinson established himself as a pioneer in the development of the theory of asset allocation
Asset allocation
Asset allocation is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investors risk tolerance, goals and investment time frame.-Description:...
Brinson pushed for allocation across stocks, bonds, cash, real estate, venture capital and other alternative asset classes using simple cost effective investment strategies. This would largely became conventional wisdom among money managers in the 1990s.
In 1989, Brinson led a $100 million management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
of his firm from First Chicago Corporation, acquiring approximately 75% of the company with a large group of partners and investors. Over the next five years built up the firm to approximately $36 billion of assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
. Brinson focused on providing access for U.S. institutions to global markets. The firm, which also managed a series of mutual funds, had emerged as one of the largest managers of pension plans in the U.S.
In 1994, Swiss Bank Corporation
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
was in the midst of a series of acquisitions that included O'Connor & Associates
O'Connor & Associates
O'Connor & Associates was a Chicago-based options trading firm, with particular emphasis on financial derivatives. The firm was acquired by Swiss Bank Corporation O'Connor & Associates was a Chicago-based options trading firm, with particular emphasis on financial derivatives. The firm was...
, S.G. Warburg & Co., Dillon Read & Co. and culminated in the bank's merger with the Union Bank of Switzerland in 1998. Swiss Bank announced the acquisition of Brinson Partners and brought in Brinson to run the bank's asset management unit. Swiss Bank Corporation
Swiss Bank Corporation
Swiss Bank Corporation was a large integrated financial services company located in Switzerland...
paid $750 million to acquire Brinson Partners, resulting in a profit to Brinson and his partners of $460 million on the sale of their 75% stake in the company.
Following the acquisition of Brinson Partners, Gary Brinson ran Swiss Bank's asset management business and after the merger with UBS, Brinson was named chief investment officer of UBS Global Asset Management.
Brinson retired from UBS in early 2000 just prior to the crash of the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
. Brinson had grown disenfranchised over the previous years with the runaway internet bubble and its detachment from fundamentals and value investing
Value investing
Value investing is an investment paradigm that derives from the ideas on investment and speculation that Ben Graham and David Dodd began teaching at Columbia Business School in 1928 and subsequently developed in their 1934 text Security Analysis...
.
Other affiliations
Brinson established the Brinson Foundation as non-profit organization focused on supporting educational, public health, and scientific research programs.External links
- The Brinson Foundation - non-profit organization supporting educational, public health and scientific research programs