ABOUT SHARATH SURY - NEWS & EVENTS
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About Sharath Sury - News and Events

News Alert! Latest Developments on Sharath Sury; ALSO: Sury's Speaking Engagements List Updated and Released Today!



News Alert! Latest Developments on Sharath Sury;
PLUS:  Sury's Speaking Engagements List Updated and Just Released Today!

Posted 6/5/2010 by STAFF on Blog.SuryOnline.Net

  • Professor Sharath Sury was awarded the honored "Extraordinary Faculty Award" by Santa Clara University.  The award was given to Professor Sury for his teaching and University service.
  • Mr. Sury spoke at the Real Estate Investors Summit: Dealmakers Conference in Miami in April.  Sharath Sury was a key contributor to the topic of "FDIC and the Bank Auction Process"
  • Sharath M. Sury spoke at the Emerging Managers Summit in Chicago in May; Sury joined the discussion which focused on the topic of "Risk Management".
  • Professor Sury moderated the Santa Clara Initiative for Financial Innovation & Risk Management (SIFIRM) "Value of Values" Conference, focusing on corporate social responsibility, social investing, and behavioral finance.
  • An Appointment as an Honorary Deputy Sherriff was awarded to Sharath Sury by the Santa Clara Co. Sheriff's Office.  Mr. Sury received the award in May and is a full member of the Sheriff's Advisory Board.

** Please Check back for the latest updates and news bulletins for Profs Sharath and Manda Sury. 

 

    ***Upcoming Speaking Engagements Coming Soon.


 

         

         

        SOURCE:  Suryonline.net 

         

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          “EXPLORING THE BASICS” With Finance Professional, and Internationally Renown Expert in Asset Allocation and Risk Mgmt, Mr. Sharath Sury (part 2 of 10)



          “EXPLORING THE BASICS” With Mr. Sharath Sury – part 2 of 10
          Posted 5/25/2010 by Chinnu S. on Everything-Finance.net 


          The following contains excerpts from an interview with Mr. Sharath M. Sury on 05/11/2010.   Part two of a ten part series begins below.


          So, what exactly is a Bear Market? Before I could even ask, Professor Sharath Sury raised an eyebrow and said, "So, you're probably wondering what a Bear Market is, in comparison."  I chuckled, but was amazed with his ability to relate to students, as i nodded affirmatively.    

          Professor Sury continued, "A 'bear' market can be defined as a market in which a particular asset class is experiencing a secular or long term decline either in absolute or relative terms.  Thus, if the Russell 2000 is exhibiting steady, declining returns—usually for at least 20% or more, we might surmise that the US small cap equities market (as represented by the Russell 2000) is in a 'bear market' phase." 

          Eager to learn if some of the theories floating amongst the students were true, I asked Prof Sury, "is it true that a 'Bear Market' is nothing more than a market correction?"  

          "Good question," Sharath Sury replied, "..[however, Bear Markets' are] to be disinguished from a "correction," which is a drop of approximately 10% from a recent peak to current trough."  Sury continued, "A correction may be self-limiting before a return to a bull market or may lead to continued declines, culminating in a bear market."  

          Natural curiosity begged the question, "When do Bear Markets typically occur in relation to major economic events?"  Sharath Sury explained that they "usually occur after the burst of a 'bubble' (e.g., housing, dot-coms, etc.), a major macroeconomic shock (e.g., credit crisis, commodity price shocks, geopolitical instability), or sustained decline in aggregate (GDP) and profits growth. 



          (...to be continued; Check back soon for part 3!)




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          Check out Sharath Sury @ Highbeam.com

          Check out the original article highlighting Sharath Sury as being one of just 40 individuals under 40 years old.

          http://www.highbeam.com/doc/1G1-109900453.html

          You can read more about Sharath M. Sury at Suryonline.net

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          The historical, 1st annual SCIFIRM Conference was last week at SCU in the . We talk to the Founder and Director of SCIFIRM in Santa Clara, Professor Sharath Sury.

          Sharath Sury Speaks at the May 15th Santa Clara Initiative for Financial Innovation and Risk Management Conference. Sharath Sury, Executive Director and Founder of SCIFIRM and Dean's Executive Professor of Finance at SCU, headed the two day conference "The Value of Values" ... << MORE >>

          “THE BASICS” With Mr. Sharath Sury – part 1 of 10


          “THE BASICS” With Mr. Sharath Sury – part 1 of 10
          Posted by Everything-Finance.net 5/13/2010 2:55 PM


          The following contains excerpts from an interview with Mr. Sharath M. Sury on 05/11/2010.  Although I was nervous (as any fan would have been), struck with awe and inspiration over the simplest of words being spoken by my role-model, Professor S.M. Sury remained humble and was pleased to help as always.  Part one of a ten part series begins below.

          Recently, I sat down with Professor Sharath M. Sury, 38, whose career in professional finance began after earning an MBA with High Honors from the University of Chicago.  I met with Mr. Sury to discuss some of the more common questions the Forum has been asked when students first begin learning finance on a high school or collegiate level. 

          With an impressive resume that we all hope to emulate (if at all possible), Sharath Sury remains a highly sought after source of financial information and education – and even more so after his recent retirement as CEO from S4 Capital, LLC.  Often, we receive emails asking us the definitions of commonly used lingo on Wall Street, and while we realize that these terms may be commonplace on The Street, the average layman’s dialogue may only encompass these words when speaking of sports, or perhaps casually pondered when succinctly mentioned on the evening news.

          Let’s briefly explore the intricacies of both “Bull Markets” and “Bear Markets” with valuable explanations from the revered Professor Sharath Sury, and for the sake of:  1) those who have never become familiar with the terms; 2) those who wouldn’t mind a refreshing reinforcement of the terms; 3) avoiding the misuse of commonly used terms while gaining an understanding of the fundamentals for each type of market label; and 4) simply wanting to include “Everything Finance” on Everything-Finance.net.

          After asking Professor Sury if he would be kind enough to help us again (as he did with his acclaimed explanation of the Alpha), he agreed without hesitation, and asserted his willingness and desire to help as many students and enthusiasts as time allowed, without regard to how easy or difficult questions will be, and without concern to how much finance education any particular individual has.  It is our hopes that having such credible and trusted authorities (like Profs Sharath and Manda Sury ) answering some of our forum newbies’ most common, basic questions will support the members’ faith and belief that there really is ONE place online to have your questions answered by experts in finance [shameless plug: Everything-Finance.net]; that  novices, intermediates, or advanced students should never hesitate to ask questions – no matter how “ridiculous” others may deem those questions to be. Professor Sury emphasized that no question is “silly”, or beyond a worthy and accurate explanation by recognized professionals and venerated field experts (as all serious students should have access to).  We both agree that this additional avenue of communication is a necessary component in Sharath Sury’s Initiative to bring instructors, professionals, and students together in an effort to help facilitate a new, cautious, and responsible generation of finance enthusiasts that will soon shape the economy of our future.

          So, with as much control over my admiration for Professor Sury as I could manage (without being blatantly obvious that I may have been too excited to conduct the interview), I asked him to explain what exactly “Bull” and “Bear” Markets are, and suggested that  it could help if he described some of the characteristics associated with each.

          Prof. Sharath Sury gave me a reassuring smile and replied, “A ‘bull’ market can be defined as a market in which a particular asset class (e.g., equities or stocks, fixed income or bonds, or commodities, etc.) is experiencing a secular or long term rise either in absolute terms or in relative (to other asset classes) terms.  Thus, if the S&P 500 is exhibiting steady, upward returns—usually for at least a sustained growth of 15-20%, we might surmise that the US large cap equities market (as represented by the S&P 500) is in a ‘bull market’ phase.”

          Thrilled with how clear and concise his answers are, I may have been somewhat quick to interrupt, but was eager to ask Professor Sury the reason why some news anchors and hosts claim that there is always a bull market to be found.  Sharath Sury’s gentle demeanor settled my anxious behavior as he answered confidently:  “Because bull markets can also be relative (to other asset classes), it is possible to have a bull market in equities while simultaneously having a bear market [defined in part 2] in bonds, for example.”  Mr. Sury concludes, “This leads some commentators, such as CNBC's Jim Cramer of ‘Mad Money’ to speculate that "...there is always a bull market somewhere.” 

          Pausing to ensure that I wouldn’t rudely interrupt him again, Sharath Sury and I exchanged a smile to acknowledge the humor, but was quick to regain my focus as he continued earnestly, “Sustainable bull markets are predicated upon attractive valuations, strong profits growth (in the case of equities/stocks), strong credit (in the case of fixed income/bonds), and so on.”  Sury concedes that it is sometimes difficult to distinguish a genuine bull market from a bear market rally (also discussed in part 2).



          SOURCE Everything-Finance.net

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          “The Origins of the Bull and the Bear in Finance History”

          Posted on 5/3/2010 by Emily S. on blog.everything-finance.net 


          MySpace Layouts
          Bull And Bear Image & Bear Pictures

          AUSTIN, May 3 /EVERYTHING-FINANCE.net/ — The world of investing is filled metaphoric references that may seem odd to individuals not familiar with such terms. One example we will discuss in this article, is the use of the phrases “bull market” and “bear market” when referencing market conditions. So what are the origins of the bull and the bear in relation to the stock market? Although the origins remain ambiguous, their meanings are quite clear; so let’s first begin with defining a “bear” and “bull” market. 


          A bull market is defined as “A prolonged period in which investment prices rise faster than their historical average. Bull markets can happen as a result of an economic recovery, an economic boom, or investor psychology. The longest and most famous bull market is the one that began in the early 1990s in which the U.S. equity markets grew at their fastest pace ever opposite of bear market." Source: www.investorwords.com/616/bull_market.html.  In a bull market, strong demand and weak supply for securities are evident; That is, many investors are wishing to buy securities while few are willing to sell. Competition amongst investors to secure available equity will cause share prices to rise—unlike a bear market (which we will discuss later in this article), the majority of investors are looking to sell rather than buy. Furthermore, in a bullish market, demand is significantly lower than supply, resulting in a drop in share prices. When the DowJones Index goes up, the U.S. media refers to the market as a “bull market”. A more experienced investor looks at more of an extensive sample of the market ,like the S&P 500 index or Wilshire 5000 index, to determine upward trends based on market entirety. For this reason, in a bullish market, the majority of U.S. domestic stocks have prices that are growing higher over time. The same approach works in non- U.S. markets, for example, when U.S. markets are bullish, Emerging Markets (for example, Brazil, Russia, India and China) are also usually Bullish. In anticipation of future price increases, a bullish market is associated with increased investing and investor confidence. The bull market trend often begins before visible signs of the general economy show signs of recovery.


          A bear market is defined on www.investorwords.com/443/bear_market.html as “A prolonged period in which investment prices fall, accompanied by wide spread pessimism.” Bear markets usually have four phases: “in the first phase, prices and investor sentiment are high, but investors are beginning to take profits and exit the market. In the second phase, stock prices begin to fall quickly, trading activity and corporate earnings fall, and positive economic indicators are below average. Investor sentiment also gets more pessimistic and some investors panic. Market indices and many securities reach new trading lows, trading activity continues to decrease, and dividend yields reach historic highs. In the third phase, prices and trading volume increase some what as speculators enter the market. In the fourth and final phase, stock prices continue to fall, but they do so at a slower pace. As investors find prices low enough and as they react to good news or positive indicators, bear markets often eventually give way to bull markets.” Source www.investinganswers.com/term/bear-market-878 “A bear market followed the Wall Street Crash of 1929 and erased 89% (from 386 to 40) of market capitalization by July 1932, marking the start of the Great Depression. After regaining nearly 50% of its losses, a longer bear market from 1937 to 1942 occurred in which the market was again cut in half. Another long-term bear market occurred from about 1973 to 1982, encompassing the 1970s energy crisis and the high unemployment ofthe early 1980s. Yet another bear market occurred between March 2000 and October 2002. The most recent example occurred between October 2007 and March 2009.” Source en.wikipedia.org/wiki/Market_trend. en.wikipedia.org/wiki/Market_trend.


          Now that we have become familiar with and have defined the terms “bullmarket” and “bear market”, let’s move on to the interesting trivia behind the actual phrases. First I would like to emphasize that the origins of the bull and bear market remain mysterious, and can vary depending on whom you’re speaking to. According to the Investopedia staff on www.investopedia.com/articles/basics/03/100303.asp, “The bear and bull markets are named after the way in which each animal attacks its victims. It is characteristic of the bull to drive its horns upinto the air, while a bear, on the other hand, like the market that bears its name, will swipe its paws downward upon its unfortunate prey. Furthermore,bears and bulls were literally once fierce opponents when it was popular to put bulls and bears into the arena for a fight match. Matches using bulls and bears (whether together or gains other animals) took place in the Elizabeth an era in London and were also a popular spectator sport in ancient Rome. Historically, the middlemen who were involved in the sale of bearskins would sell skins that they had not yet received and, as such, these middlemen were the first short sellers. After promising their customers to deliver the paid-for bearskins, these middlemen would hope that the near-future purchase price of the skins from the trappers would decrease from the current market price. If the decrease occurred, the middlemen would make a personal profit from the spread between the price for which they had sold the skins and the price at which they later bought the skins from the trappers. These middlemen became known as bears, short for "bearskin jobbers", and the term stuck for describing a person who expects or hopes for a decrease in the market.”


                      The etymology of the bull and bear market terms continues to be a mystery. They’ve survived over nearly three centuries, and depending on whom you talk to, you may get yet another bull and bear story.However you look at it, these animals have made their way into the finance world, and remain to be common verbiage synonymous with market conditions.



          SOURCE EVERYTHING-FINANCE.net




          About the Author:

          Emily S. is a former student of Professor Sharath M. Sury, and a current assistant to Dr. M. Sury on Everything-Finance.net. 

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          Article: Dr. MBS Investigates The BETA -- a response to "Sharath Sury Explains The Alpha"


          The BETA Significance
          by Dr. M. Sury


          CHICAGO, APRIL 5 /Everything-Finance.net/ — Sharath Sury explains that the returns from a fund are attributable to three sources – the Manager’s skill, the Market and Random fluctuations. The return derived from the Manager’s skill alone (if consistent during the period of observation) is called Alpha (Greek letter a).  The return attributable to the Market is denoted as a multiple Beta (Greek letter b) of the Market’s return. Finally the random fluctuation is denoted as Epsilon (Greek letter e). While this is a simple concept, there is quite a bit of complexity swept under the word “Market”. 
           
          When the investable universe is U.S. Domestic equities (more specifically, the members of an index such as S&P 500), then the market is that index and so the volatility of the index becomes the Market risk. Beta, in this case, represents the “relative volatility” (called Covariance) in the fund per unit level of Market volatility.   The return of the fund attributable becomes Beta* X where X is the return of the S&P 500. When we take this more precise definition, and analyze what is practiced in the industry, we come to realize that the definition of Market can be different in different contexts.  Thus, for example, we look at both equities and debt instruments; the Market has to include not only Stocks, but Bonds of all types as well. If we wish to include the entire World Markets, then the return attributable to market is Beta*W where W is the return of a portfolio that consist of all bonds and equities in the entire world.
           
          To simplify the discussion, some analysts have taken the approach that the return W of the entire World market is not significantly different from a “workable subset” such as the MSCI World Index and any small difference can be included in the Epsilon factor. This still does not address the fact that there are other asset classes (e.g. Commodities and real estate) that also can be invested and are actually traded in practice. 
           
          Yet another complexity in defining the “market” is the inability (or unwillingness) of the investor to participate in certain segments of the market.  For example, an investor may wish to invest only in Socially Responsible Investments (SRI). This would then restrict what the “Market” can include.
           
          Thus, for an investment advisor, the practical approach consists of the following steps: (a) Determine the “universe of investments” applicable to this investor and identify one or more (non overlapping) asset classes that represent this universe (b) Identify the allocation of assets to be invested in each class (c) construct a “custom index” using these allocations and find the “calculated returns” of the custom index to be used as the “Market return” X and  (d) use statistical “regression” technique to find the regression coefficient of the Fund’s historical returns relative to the corresponding market returns X.
           
          There are several variations of the above technique in the literature using multi- dimensional Statistics which are beyond the scope of this note.
           

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          Article: What Are 'Fundamentals'?

          An Examination Of  Fundamentals
          By Dr. M. Sury
           
          In investing, one can select securities based on “Technical considerations” or based on “Fundamentals”. We say that the decision to select a particular security (e.g. a stock or a Bond or a commodity etc) is based on technical considerations if the information used in the decision process is solely the patterns observed in the historical returns of that security and any associated statistics. 

          Such an approach believes in the “pattern behavior” and that the company’s performance characteristics are already captured in the series of historical returns.  In contrast, those who select a security based on Fundamentals believe that the success or failure of the investment in that security will depend on the Management Team for that security as well as the resources they have access to and how they would use those resources to steer the growth of the security.  Information such as the Earnings in the past four quarters, earnings predicted for the next four quarters are most commonly used fundamentals.  To be able to compare the earnings of two different securities involved in the decision process, we use PE (or price to earnings ratio).  Clearly higher the PE, the price per a dollar of earnings is higher and thus the security with the higher PE is Costlier.  Every thing else being equal, lower PE is preferred. 
           
          Sometimes, the price P of a security is compared to its assets (also referred to as the Book B ) and the ratio P/B (Price to Book) is used in comparing two securities, especially if the companies are in distress the investor is thinking of a Liquidation value of the remaining assets to decide on the investment.
           
          Other fundamental information commonly used is the Debt to Equity Ratio.  Clearly, the fact that debt holders have to be paid prior to holders of equity  (in any liquidation) makes a security with higher Debt to Equity ratio to be less favored. It is to be noted that the revenues used to service an existing debt reduce the amount available for either growing the company or to pay dividends to the shareholders.
           
          ~ Manda Sury

          _____________________________________________________

          About Dr. Manda Sury

          As a Principal and member of the Investment Committee at S4 Capital, Dr. Sury supervises the Firm’s quantitative/analytic programs and information architecture. In particular, Dr. Sury is responsible for the design and implementation of the portfolio optimization procedures for S4 Capital’s critically acclaimed “Efficient Portfolio Management (EPM)” process. 

          Dr. M. Sury is a recognized expert in the fields of portfolio optimization, equilibrium-based asset allocation, and active risk budgeting. Among his research interests are investment risk modeling (including the incorporation of non-normal skew and kurtosis, conditional value-at-risk, and regime- or state-dependent performance), alpha-beta separation (analysis and identification of the systematic risks assumed by active investment managers), and the design of high-efficiency, high-speed computational procedures to facilitate complex financial simulations and calculations. 

          In addition, Dr. M. Sury is responsible for engineering S4’s database architecture, which manages and integrates information across the firm’s global portfolio management, relationship management, and risk management efforts. 

          Dr. M. Sury had previously held a variety of senior-level technical positions in both industry and academia, including Fidelity Investment Systems Co., Lockheed Missiles & Space Co., AT&T/Bell Laboratories, and the University of Michigan. Dr. M. Sury is a prolific author, with over two-dozen major research publications in the fields of mathematics, optimization, and computer science. He received his M.S. in Mathematics, M.S. in Computer Science, and Ph.D. in Mathematics from the University of Michigan at Ann Arbor. 

          A loving husband, and father of two, Dr. M. Sury is cited by his son, esteemed professor and internationally recognized expert in Risk Management and Asset Allocation — Sharath Sury, as being the single most beneficial influence in his life.  


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          Proud Father of Revered Professor Sharath Sury, Reflects on The Early Years of his Son's Extraordinary Career

          Direct from Dr. M. Sury, and in his own words...

          Professor Sharath M. Sury, The Early Years of a Pioneer.



          When Sharath Sury, my first son, was born in 1972, the memories of the mild recession of 1969-70 were fading as were the memories of the 6 day war and subsequent first Oil embargo of 1967.  We were quite happy with the academic environment in Michigan and the exciting new world of electronics paving the way for the future of micro-processing. During the next 5 years, we felt the growing unrest in Middle East and the impacts of the second oil embargo.  The promise of the computer programming and personal computers grew both in the media and in the Universities.  We did not want to fall behind.  Sharath Sury was encouraged to work with numbers and enjoy doing so.
           
          The 70s and early 80s saw the acceleration in micro-processor and computer technology Even elementary schools started to expose children to personal computers (PCs).  Sharath Sury was curious and showed great interest in Science and technology. He became a favorite of the teachers with his dedication and diligence. In Sharath's high-school years, his involvement with Mathematics competitions, Science Fairs and accelerated (“magnet”) program allowed him to be part of the MCC, a consortium of 32 high-technology companies that was trying to push the envelope on Micro Chip technology.  Sharath Sury was able to collaborate with prominent scientists in areas of Artificial Intelligence at the age of 14. I recall feeling very proud of Sharath, as he was subsequently able to work within Lockheed on C3 (Command, Control and Communications) projects, using his skills as a programmer in Ada, the special language used in Defense programs.
           
          It was a summer camp during Sharath Sury's early college days, where the Business School Dean (for University of Austin, Texas) was able to show the promise of a career in investments and Business.  At the same time the events of 1987 Stock market crash and personal involvement of Sharath's mother, Radha Sury, in the options market that drove him to explore the career in Business more seriously.  Sharath Sury's work with the economists in University of California at Santa Cruz further cemented his desire to pursue his MBA path.  While Sharath's passion was also in Crime Prevention (cultivated with the position he held with  the District Attorney’s office in Santa Clara, using his skills in PC technology), he decided to complete his MBA with the University of Chicago, well known for its focus on Quantitative Finance.
           
          It was natural that Sharath Sury also was drawn toward Goldman Sachs (GS) where pioneering methodologies were being tested in the fields of investment banking and asset management.  Besides being an intern with GS, he was also hired immediately after graduation into the workforce in the Private Client Services division.

          ~ Manda Sury

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          The Comment Showcase for Sharath and Manda Sury


          In this entry, we will showcase some of the posted comments about either Sharath or Manda Sury (or both)
          that caught our attention by bloggers accross the web.  Let's hear what You have to say!
          • The Sharath and Manda Sury Comment Showcase: (updated weekly)

            • Posted on Everything-finance.net by Suzie F. on 4/4/2010:  "Right on Shelli! I read the article too, on http://focus.com/profiles/sharath-sury-1/public. I wish more professors would take the time to enlighten us with their stories [like Sharath Sury has]. It would probably help us pay more attention in class"

           

            • Posted on Everything-Finance.net by Shelli Frazier on 4/3/2010:  "First of all, Congrats to Dr. M.B. Sury on becoming Everything-Finance.net 's Expert Contributor! — As far as Professor Sharath Sury...I thinks it's great that he has so many admirers, but what I found was really interesting was the latest article posted on http://www.suryonline.net ... one of his heroes is his father, Dr. M Sury, and to read the article "Professor Sharath M. Sury, The Early Years of a Pioneer.", allows us insight to where great educators like Professor Sury come from. And Jay..are u really news 24/7? lol I love it

           

            • Posted on blog.suryonline.net by Donna J on 3/21/2010:  "Sharath is great, but Sharath's father, M. Sury has an incredible background, education, experience and character that few could ever emulate. If Sharath Sury was the President of the United States, then M. Sury would be the President to the UN General Assembly." 

           

            • Posted on blog.everything-finance.net by P. Sezari on 3/31/2010:
              "... it doesn't matter if it's [in] person, by seminar, summit, print, or web — if it's forward thinking in [the finance fields of] risk management and asset allocation...[with the] standards firmly in place, Sharath Sury is probably at the Center of it."

           

            • Posted on RateMyProfessors.com by Anonymous on 3/27/2010:
              "Both Professors, Sharath + M. Sury, are geniuses when it comes to math and finance. Professor Sharath Sury has a career that I hope to emulate! He's my finance mentor and i'm disappointed to see his next class already filled! Hopefully seats are added soon—no other professor provides such clear, comprehensive insight quite like prof Sharath Sury."

           

            • Posted on blog.everything-finance.net by Greg H.  on 3/31/2010:
              "Everyone knows Sharath Sury must be one of the busiest men around. The fact that he's able to still take the time out, in addition to the time he already volunteers, to teach the next generation of CFO hopefuls says a lot about this man's character!"

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