Max Heine
Encyclopedia
Max L. Heine was a value investor
and fund manager in 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 by Benjamin Graham
, the well-known mentor of other value investors, including Warren Buffett
.
He then began investing by taking all of the money he and his new bride had and bought 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 Franklin Templeton 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 "trails".
The Stern School of Business at New York University
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 Tucson, Arizona
.. His obituary ran in the New York Times.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.
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...
and fund manager in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
.
Biography
A Jewish law student in Berlin, Max fled Nazi Germany in the late 1930s for New YorkNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, 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 by Benjamin Graham
Benjamin Graham
Benjamin Graham was an American economist and professional investor. Graham is considered the first proponent of value investing, an investment approach he began teaching at Columbia Business School in 1928 and subsequently refined with David Dodd through various editions of their famous book...
, the well-known mentor of other value investors, including 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...
.
He then began investing by taking all of the money he and his new bride had and bought 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 Franklin Templeton 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 "trails".
The Stern School of Business at New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
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 Tucson, Arizona
Tucson, Arizona
Tucson is a city in and the county seat of Pima County, Arizona, United States. The city is located 118 miles southeast of Phoenix and 60 miles north of the U.S.-Mexico border. The 2010 United States Census puts the city's population at 520,116 with a metropolitan area population at 1,020,200...
.. His obituary ran in the New York Times.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.