Haas NewsWire

Haas NewsWire, April 24, 2006

Haas Alumnus Richard Blum Makes $15 Million Gift to Create Poverty Center

Richard Blum

Chancellor Robert J. Birgeneau has announced the creation of a major new multidisciplinary campus initiative to improve the quality of life for impoverished people by helping them develop their full economic potential -- the Richard C. Blum Center for Developing Economies.

The Blum Center is being launched with a $15 million gift, which includes a $5 million challenge grant, from San Francisco financier, philanthropist, University of California regent, and Haas School alumnus Richard C. Blum, BS 58, MBA 59.

The Richard C. Blum Center for Developing Economies will be a unique, university-led model for fighting global poverty, according to Richard K. Lyons, professor of finance and executive associate dean at the Haas School of Business, who is working with Blum on the creation of the center.

Lyons said the center's board of trustees will be chaired by Laura Tyson, former president of the Council of Economic Advisors in the Clinton administration, former dean of the Haas School and current dean of the London School of Business, who will return to UC Berkeley in early 2007. Lyons will continue in his role as executive associate dean at the Haas School while working with the center.

The center will tap the expertise and resources of the nation's top public teaching and research university to achieve significant — and financially sustainable — solutions to problems affecting the nearly three billion people in the world who are living on less than two dollars a day.

"I believe UC Berkeley can have a singular effect in the fight to alleviate human suffering," said Blum. "If you look at the dangerous political divisions in today's world, you will find that most extremism has its roots in poverty and lack of education. We hope that our center will help train the next generation of leaders to be dedicated to alleviating poverty in the developing world. Furthermore, the center plans to put together teams of students and faculty to work in specific areas abroad where UC's expertise could be applied."

The Blum Center will have two purposes: 1) to educate UC Berkeley students about the world of foreign assistance, its potential and its challenges; and 2) to draw on UC Berkeley faculty expertise from a wide range of disciplines including governance and law, affordable technology, agriculture, healthcare services, infrastructure and general economic development. It will also focus on encouraging and developing entrepreneurship. It will draw on the expertise from faculty at other University of California campuses to put together teams to work on projects in the field.

Former US President Jimmy Carter, His Holiness the Dalai Lama, and former Secretary of State George Shultz, all close friends of Blum's, have agreed to serve as honorary trustees on the Blum Center's board of trustees. An executive director for the center is being sought, and a physical location for the center is yet to be determined.

"We are grateful for the opportunity that Richard Blum is giving us through this most generous gift," said Birgeneau. "UC Berkeley is the ideal place to tackle these issues. Our rich tradition of activism and public service and the tremendous breadth of UC Berkeley's expertise and resources will allow us to partner with people in need to help them change their circumstances for the better. We can't imagine anyone better suited than Richard Blum to join us in this effort."

Blum has been devoted to helping to solve the issue of poverty for three decades, with particular emphasis on investing in local communities to help them develop greater economic self-sufficiency. He founded the American Himalayan Foundation 25 years ago, which runs over 130 projects in the Himalayan region ranging from schools, health services, cultural preservation, forest restoration, and small-scale economic development.

Blum earned his BS in 1958 and his MBA in 1959 from UC Berkeley and also studied at the University of Vienna. He started his career in 1958 at the venerable investment firm of Sutro and Company and became the youngest partner in its 100-year-plus history. He then founded Blum Capital Partners, LP, in 1975. He also co-founded Newbridge Capital, a pioneer investor in private equity in Asia, which today has six offices in Asia and is one of the major foreign investors in the region. He is also chairman of the board of CB Richard Ellis, Inc., the world's largest commercial real estate services company. In 1994, the Haas School named him Business Leader of the Year.

For more information on the Blum Center, visit blumcenter.berkeley.edu.

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Haas Undergraduate Team Takes Top Honors in KPMG's Accounting Competition

KPMG Alpha Case Competition

A team of four Haas School undergraduate students won the western region finals of the 2006 KPMG Alpha Case Competition last Friday, April 21, held at the KPMG headquarters in Los Angeles.

Team members Sana Ahmed, BS 07; Margaretha Margaretha, BS 07; Daisy Cazares, BS 07; and Carlos Montesinos, BS 06, beat out teams from the University of Southern California, the University of Arizona, and the University of Washington, among others. The Haas team now moves on to represent the Haas School at the national competition to be held in Texas next fall.

"Our students were assigned a challenging case on mergers and acquisitions in which they demonstrated their knowledge, research ability, and communication skills with great dexterity and competence," says Solomon Darwin, executive director of the Center of Financial Reporting & Management and faculty advisor for the team. "They confidently addressed the tough questions posed by the judges relating to the tax accounting issues and legal structure of the business combination."

Haas alumna Teresa Gayton, BS 91, a KPMG advisory partner, served as the professional advisor for the Haas team. Lecturer Victor Stanton, who teaches managerial accounting at the undergraduate level, worked with the students to prepare them for the competition; Professor Emeritus Alan Cerf advised on tax issues.

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Mexican Banking Leader Ricardo Guajardo, MBA 72, to Speak at Haas May 5

Ricardo Guajardo, MBA 72

One of Mexico's leading bankers, Ricardo Guajardo, MBA 72, will speak on "Key Success Factors for Development: Why Economic Liberalism Disappoints So Many in Latin America" at a Dean's Speakers Series event being held in Cheit Hall room 230 on Friday, May 5, at 12:15 p.m.

The Haas School appearance by Guajardo is cosponsored by the Latin American and Hispanic Business Student Association and was made possible, in large part, by first-year Berkeley MBA student Santiago Campero. The Center for Latin American Studies and the Clausen Center for International Business and Policy are also sponsoring the event.

Guajardo is the former CEO and chairman of BBVA Bancomer, and currently serves as chairman of BBVA Holdings in the US. He serves on the boards of some of Mexico’s largest corporations, including Fomento Económico Mexicano and Grupo Aeroportuario del Sureste. He is also a member of the International Capital Markets Advisory Committee of the Federal Reserve Bank of New York.

He began his career in the Financial Planning Group of Banca Serfin and later served as chief financial officer of Grupo AXA, corporate director of Grupo FEMSA, and chief executive officer of Grupo VAMSA, an insurance company. Guajardo has also served as chairman of the Centro de Estudios Económicos del Sector Privado, a private sector think tank on Mexican economic policy.

Guajardo holds a degree in electrical engineering from the Instituto Tecnológico de Monterrey, Mexico, and a Bachelor of Science degree in electrical engineering from the University of Wisconsin. He graduated with an MBA from UC Berkeley in 1972.

For more information on this event, contact Campero at campero@haas.berkeley.edu.

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The American Dream at Haas: Undergrad Program Helps Level the Playing Field

The Haas School's Undergraduate Program continues to play a critical role in providing access to economic opportunity to a significant number of students coming from immigrant families, according to surveys of the students admitted to the program over the past two years.

Surveys of the incoming Haas undergraduate class over the past two years have found that about one-third of the 350 new undergraduate students are immigrants to the US, and as many as two-thirds have at least one parent who is an immigrant.

"Our graduates gain access to the best jobs in our economy -- from which even better things will come," says Dean Tom Campbell. "This is the classic American Dream and it is happening every day in our classrooms."

For the majority of incoming students, English is not necessarily the primary language spoken at home. In the 2005 survey of entering students, 38 percent reported that English is not their first language and another 27 percent reported that they speak English and another language at home.

In both years of the survey, Haas undergraduates who are also immigrants named over 20 different countries as their place of birth. The top five countries were China, Taiwan, Russia, Korea, and Iran. Students also reported emigrating from Belarus, Ethiopia, Germany, and Pakistan among others.

Only 17% of the students are the first in their families to attend college. The majority of the new students are from families in which both the mother and the father attended college.

Serving the newest immigrants to the state is not a new phenomenon at Haas. Some of the school's most successful alumni have immigrant roots, including:
+ Rudolph Peterson, BS 25, whose parents came to the US from Sweden, served as CEO of the Bank of America from 1961 to 1970,
+ Michael Blumenthal, BS 51, Secretary of the Treasury from 1977-1980, who was born in Germany,
+ The founder of Chef America and creator of HotPockets Paul Merage, BS 66, who emigrated from Iran in the 1960s and is now a major donor to UC Irvine,
+ Dennis Wu, BS 65, MBA 67, who emigrated from the Philippines at age 16 and spent 37 years at Deloitte. He is now executive vice president and CFO of United Commercial Bank.

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Support Berkeley MBA Students in Nonprofit Internships at the Hoedown at Haas, April 25

Professors Richard Lyons, Andrew Rose, Pino Audia, David Vogel, and Kellie McElhaney will act as guest chefs at the April 25 “Hoedown at Haas,” this year’s Haas for Students fundraiser supporting Berkeley MBA students with summer internships in the nonprofit or public sector.

For the first time, Amazon.com will be matching contributions to the Haas for Students fund.

“Hoedown at Haas” takes place Tuesday, April 25, at 12:30 p.m. in the Haas School courtyard and features lunch, raffles for HP digital cameras and a portable printer, a Culinary Club bake-off, and an eating contest. First-year MBA students typically donate the equivalent of one day of their summer internship salary to Haas for Students (formerly Students for Students). This year, the entire Haas community is encouraged to support the cause.

According to Nonprofit and Public Management Program Director Nora Silver, who oversees Haas for Students, nearly $45,000 needs to be raised this year to provide stipends for the increased number of students taking qualifying internships. These Berkeley MBA students will spend the summer working forsuch organizations as the Kilimanjaro Center for Community Ophthalmology, the David & Lucile Packard Foundation, and the Inter-American Development Bank.

For more information on Haas for students or to make a pledge, visit http://groups.haas.berkeley.edu/netimpact/events.htm#haasforstudents.

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Berkeley MBA Student Wins First-ever UC BioFellowship

The Lester Center for Entrepreneurship & Innovation's new UC BioFellowship program, which was initiated by a full-time Berkeley MBA student in late 2005, has named its first two recipients of the UC BioFellowship.

Lester Center Associate Director David Charron credits first-year Berkeley MBA student Daniel Brounstein for initiating the fellowship program and for bringing in the venture capital firm Three Arch Partners to collaborate on it. Working closely with the Lester Center and the Berkeley BioBusiness Association, Three Arch Partners places fellows in its portfolio firms to give the students real-life experience with a medical device startup. “Dan’s initiative and energy really made this new program happen,” says Charron.

The first two recipients are full-time Berkeley MBA 07 student Danel Mayer and Witney McKiernan, a Master's student in health policy at the University of California, San Francisco. McKiernan will be working at Metrika, an innovator in diabetes monitoring. Mayer will work this summer at Kerberos, an early-stage startup focused on technology in the cardiovascular space. Mayer, who is also a Gap Inc. Corporate Social Responsibility scholar, co-founded Israel's first middle-market private equity boutique firm, focusing on investments in low socio-economic areas.

“We are delighted to have inaugurated the program with Danel as a fellow and look forward to continuing the program next year,” says Charron.

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Save May 5 to Celebrate at Annual End-of-the-Year Party

All Haas School faculty, staff, and students are invited to the dean's annual End-of-the-Year Party on Friday, May 5, from 4:00 p.m. to 5:00 p.m. in the Haas courtyard.

Hosted by Dean Tom Campbell, the celebration features Compadres' Mexican Grill, refreshments from Pyramid Brewery, and live entertainment by the student group, "Artists in Resonance." At 4:15 p.m. there will be a brief award ceremony announcing the winners of the Earl F. Cheit Award for Excellence in Teaching and the GSI awards, among others. In addition, the results of the MBA "LifeLong Connections" and undergraduate "Feed The Bear" Student Fundraising campaigns will be announced.

For more information, contact Carlis Crowe at carlis@haas.berkeley.edu.

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Haas in the News

Henry Chesbrough, adjunct professor and executive director of the Center for Open Innovation, was quoted in an April 24 BusinessWeek article titled “The World's Most Innovative Companies,” regarding the escalating phenomenon of open innovation and the open-source movement. For full article: http://www.businessweek.com/magazine/content/06_17/b3981401.htm?chan=innovation_innovation +%2B+design_innovation+and+design+lead

Executive Associate Dean Richard Lyons was mentioned in an April 20 East Bay Business Times article titled “UC regent gives $15M to launch Berkeley center.” For full article: http://www.bizjournals.com/eastbay/stories/2006/04/17/daily27.html

Peter Sealey, adjunct professor in the Marketing Group, was quoted in an April 19 Contra Costa Times article titled “Faithful filmgoers flock to 'Prophecy',” regarding marketing to the churchgoing population. For full article: http://www.contracostatimes.com/mld/cctimes/14376133.htm

Kellie McElhaney, adjunct professor and executive director of the Center for Responsible Business, was quoted in an April 18 BusinessWeek article titled “Bausch & Lomb: Crisis Management 101.” For full article: http://www.businessweek.com/investor/content/apr2006/pi20060417_741558.htm

Chesbrough was also quoted in an April 18 New York Times article titled “Academia Dissects the Service Sector, but Is It a Science?” For full the article: http://www.nytimes.com/glogin?URI=http://www.nytimes.com/2006/04/18/business/18services.html &OQ=_rQ3D1&OP=72c2b131Q2FvTh.vEGlW!GGNuvu--qv-Q23vb,v.Q22WQ7EJhWWvb, Wh!Q5CQ7ElhWQ2AwNiQ2F (requires registration)

Severin Borenstein, the E.T. Grether Professor of Business Administration and Public Policy, was quoted in news outlets regarding increasing gas prices:
+ April 18 Chicago Tribune article titled “A funnel full of factors.” For full article: http://www.chicagotribune.com/business/chi-060418oil,1,6989123.story?coll=chi-business-hed &ctrack=1&cset=true
+ April 18 Sacramento Bee article titled “Oil prices surge, forcing gas prices up.” For full article: http://www.sacbee.com/content/business/story/14244729p-15063136c.html

Sebastian Teunissen, executive director of the Clausen Center for International Business and Policy and adjunct professor, was interviewed on April 17 on ABC 7 News regarding Chinese President Hu’s visit to the United States. For full story: http://abclocal.go.com/kgo/story?section=business&id=4090546

James Wilcox, the Kruttschnitt Family Professor of Financial Institutions, was quoted in an April 16 San Francisco Chronicle article titled “How rising rates could affect economy - Some experts see little impact, others foresee recession.” For full article: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2006/04/16/BUG78I9BTT1.DTL &type=business

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Happening at Haas

Monday, April 24
7:00 p.m. to 9:00 p.m.
Sibley Auditorium, Bechtel Engineering Center
For more information, visit: http://journalism.berkeley.edu/events/details.php?ID=299 or contact Caely Cusick at caelyc@berkeley.edu.

"Technology, Growth, and Innovation" with Tom Duerig, CEO, NDC Division, Johnson and Johnson
Wednesday, April 26
4:00 p.m. to 6:00 p.m.
Wells Fargo Room
No company has seized opportunities in global biotech investment and growth as effectively as Johnson & Johnson. CEO of J&J's NDC Division Tom Duerig will discuss the company's strategy and the road ahead.
For more information, contact Susan Reneau at sreneau@haas.berkeley.edu.

Thursday, April 27
6:00 p.m. to 8:30 p.m.
Arthur Andersen Auditorium
The UC Berkeley Business Plan Competition finalists will present their pitches to the public before the winners are announced at the UC Berkeley Entrepreneurs Forum, in the Arthur Andersen Auditorium. The audience will vote to determine which team wins the 2006 People's Choice Award.
For more information, visit http://bplan.berkeley.edu.

"Key Success Factors for Development: Why Economic Liberalism Disappoints So Many in Latin America" with Ricardo Guajardo, MBA 72
Friday, May 5
12:15 p.m.
Cheit Hall 230
Guajardo is the former CEO and chairman of BBVA Bancomer and serves on the boards of some of Mexico's largest corporations. This event is co-sponsored by the Latin American and Hispanic Business Student Association, the Center for Latin American Studies, and the Clausen Center for International Business and Policy.
For more information, contact Santiago Campero at campero@haas.berkeley.edu.

Friday, May 5
4:00 p.m. to 5:00 p.m.
Haas School Courtyard
The entire Haas community is invited to celebrate the end of another fabulous year at the Haas school at this all-school party.
For more information, contact Carlis Crowe at carlis@haas.berkeley.edu.


Connson Locke, Carmit Tadmor
Wednesday, April 26
4:00 p.m. to 5:30 p.m.
Cheit Hall 330
For more information, contact Deborah Houy at houy@haas.berkeley.edu.

"Executive Exercise Explained: Patterns for Stock Options" by Vicky Henderson, Princeton University
Thursday, April 27
4:10 p.m. to 5:40 p.m.
Cheit Hall 220
For more information, contact June Wong at june@haas.berkeley.edu.

“Consortium Contracts” by Dean Williamson
Thursday, April 27
4:10 p.m. to 6:00 p.m.
Cheit Hall 325
For more information, contact Anita Stephens at stephens@haas.berkeley.edu.

OITM Seminar
“Capacity Investment under Postponement Strategies, Market Competition and Demand Uncertainty” by Ravi Anupindi, University of Michigan, Ann Arbor
Thursday, April 27
11:10 a.m. to 12:30 a.m.
Room S489

David Zilberman, Haas School
Friday, April 28
4:00 p.m. to 5:30 p.m.
Cheit Hall 250
For more information, contact Laura Gardner at lgardner@haas.berkeley.edu.

"The 'Wall Street Walk' as a Form of Shareholder Activism," by Anat Admati and Paul Pfleiderer, Stanford University and "Do Noise Traders Move Markets?" by Terry Odean, Haas School
Wednesday, May 3
2:30 p.m. to 5:30 p.m.
Room S489
For more information, contact June Wong at june@haas.berkeley.edu.

Vinit Desai, Kuo Yu
Wednesday, May 3
4:00 p.m. to 5:30 p.m.
Cheit Hall 330

"Incentives in Markets: Firms & Governments" by Atif Mian, University of Chicago
Thursday, May 4
4:10 p.m. to 6:00 p.m.
Cheit Hall 325
For more information, contact Anita Stephens at stephens@haas.berkeley.edu.

Loraine Lau, UC Irvine
Friday, May 5
4:00 p.m. to 5:30 p.m.
Cheit Hall 250
For more information, contact Laura Gardner at lgardner@haas.berkeley.edu.

Alumni Events

Networking and Financial Planning Event
Tuesday, April 25
6:00 p.m. to 8:30 p.m.
UBS Office, 2185 North California Blvd, Suite 400, Walnut Creek
The East Bay Chapter of the Haas Alumni Network invites you to attend a special Networking and Financial Planning Event. There will be an informal discussion on the following Estate Planning topics: 1. What are the benefits of estate planning? What does it mean for the average person? 2. What is a trust? What impact does a trust have on probate? What is the probate process? 3. Basic trust documents that most people should consider (revocable living trusts, A/B trusts, etc.). How would assets be distributed? 4. Other types of trusts and when they would be used (ILIT, charitable remainder trusts, GRATs, etc.).
To register go to http://www.acteva.com/booking.cfm?bevaid=109551.
For more information, contact Dean Suzuki at suzuki@ubs.com.

All-Alumni Reunion Conference
Saturday, April 29
9:30 a.m. to 5:30 p.m.
Haas School of Business, Arthur Andersen Auditorium
All Haas alumni are invited back to Haas for the All-Alumni Reunion Conference. Join fellow alumni, Haas faculty and industry leaders for a day of discussions and presentations on "Future Trends in Business: A Look Behind The Headlines." The All-Alumni Reunion Conference brings together a selection of outstanding faculty and alumni who will discuss the issues and concerns facing business leaders today. We will hear from Haas alumni working at Google, beloved faculty from your days in the classroom and new Haas superstars. The day will include the conference, lunch and a consumption function after the conference. Join us for a wonderful day back at Haas.
To register, go to www.haas.berkeley.edu/alumni/reunion.
For more information, contact reunion@haas.berkeley.edu.

Cross-Business School Happy Hour
Tuesday, May 2
6:00 p.m. to 9:00 p.m.
Julien Bar and Lounge, Langham Hotel, 250 Franklin Street, Boston
Join alums from Wharton, Sloan (MIT), INSEAD, IMD, Stanford, Stern (NYU), Tuck (Dartmouth), SOM (Yale), London Business School, Johnson (Cornell), Fuqua (Duke), Harvard, and Columbia for the monthly Cross-Business School Happy Hour. It is a great way to meet and mingle with alums from Haas and other business schools.
For more information, contact Celine Pan at celine_pan@yahoo.com.

Bar Night
Thursday, May 11
6:30 p.m. to 8:30 p.m.
HiDive, Pier 28 1/2 (at Bryant Street), San Francisco
Join the Berkeley-Columbia Executive MBA Bay Area alumni for bar night in San Francisco at HiDive. It's a great way to meet up with old friends, meet new students and have a fun evening.
For more information, contact Martha Gerhan at magerhan@mindspring.com.

Panel Discussion, Evolving Exit Market for Entrepreneurs
Tuesday, May 16
World Trade Club, San Francisco
The San Francisco Alumni Chapter will be holding a panel discussion at the World Trade Club on "Evolving Exit Market for Entrepreneurs." More details to come soon.
For information, contact alumni@haas.berkeley.edu.

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