Bruce R. Bent
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Bruce Roger Bent (born May 25, 1937) is an American businessman credited with inventing the world's first
money market fund A money market fund (also called a money market mutual fund) is an open-end mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper. Money market funds are managed with the goal of maintaining a hig ...
, the Reserve Fund, with Henry B. R. Brown in 1970. Bent and Brown created an organizational structure by which investors could pool cash to gain access to the market for short-term money obligations. Money market funds now manage more than US$3.0 trillion, serving tens of millions of investors. In the book ''One Up on Wall Street'', published in 1989,
Peter Lynch Peter Lynch (born January 19, 1944) is an American investor, mutual fund manager, author and philanthropist. As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return, consistently m ...
wrote that "there ought to be a monument to Bruce Bent and Henry B.R. Brown" in regards to their role in inventing the money market fund. The American Museum of Financial History, an affiliate of the
Smithsonian Institution The Smithsonian Institution ( ), or simply the Smithsonian, is a group of museums, Education center, education and Research institute, research centers, created by the Federal government of the United States, U.S. government "for the increase a ...
, also recognized the money market fund's importance and impact on the nation's financial history.


Early life and education

Bent was born and raised in
Great Neck, New York Great Neck is a region contained within Nassau County, New York, Nassau County, New York (state), New York, on Long Island, which covers a peninsula on the North Shore (Long Island), North Shore and includes nine incorporated villages, among th ...
. He attended St. Aloysius School and graduated from Great Neck North High School. After high school Bent worked as a mail clerk and carrier at the Great Neck Post Office and served in the
Marines Marines (or naval infantry) are military personnel generally trained to operate on both land and sea, with a particular focus on amphibious warfare. Historically, the main tasks undertaken by marines have included Raid (military), raiding ashor ...
before attending St. John's University. Bent graduated with a bachelor's degree in economics from St. John's in 1961. He also created the world’s first money market system, and sold it for millions of dollars. Later on, he stated he regretted the sale and believed he should have given all of the money to hurricane relief foundations.


Career

Bent started his Wall Street career as a managing partner at LF Rothschild and Company Inc. Two years later, he began working at the pension firm, TIAA-CREF, where he met his eventual business partner, Brown. In 1968, the pair created their own firm, Brown & Bent. In August 1969, while brainstorming about investment vehicles, Bent posed the idea for a mutual fund that could offer rates of return while allowing for zero
market risk Market risk is the risk of losses in positions arising from movements in market variables like prices and volatility. There is no unique classification as each classification may refer to different aspects of market risk. Nevertheless, the m ...
. The idea was to give investors immediate liquidity and safety for their money above all else. In 1970, the firm launched its first money market fund, the Reserve Fund, to provide effective cash management, a dollar back for every dollar invested and beyond that a reasonable rate of return. The fund was launched with no sales force or advertisements, and instead relied on phoning investment advisers and handing out brochures. In January 1973, ''
The New York Times ''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...
'' published an article about their firm and by the end of the year it had $100 million in deposits. Brown left the company in 1985, but maintained stock in half the business. In 1999, Bent bought out Brown's stake in the company and continued to run it with his sons. The Reserve Primary Fund ceased operations on September 17, 2008 in relation to the collapse of the
Lehman Brothers Lehman Brothers Inc. ( ) was an American global financial services firm founded in 1850. Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, and Merril ...
.


Politics

In 2001, Bent was the Republican candidate for Nassau County
Executive Executive ( exe., exec., execu.) may refer to: Role or title * Executive, a senior management role in an organization ** Chief executive officer (CEO), one of the highest-ranking corporate officers (executives) or administrators ** Executive dir ...
. Before he was chosen as the Republican candidate, he received the endorsement of the
Conservative Conservatism is a cultural, social, and political philosophy and ideology that seeks to promote and preserve traditional institutions, customs, and values. The central tenets of conservatism may vary in relation to the culture and civiliza ...
Party and ran with little assistance from the county's Republican Party. Promising to improve the county's financial situation and work for a salary of $1 a year, he lost to Democratic candidate Tom Suozzi.


Personal life

Bent has two sons with his wife Nancy. In 1980, he endowed Bent Hall, a seat of the St. John's University College of Business. Bent serves as a Trustee Emeritus for St. John's University, where he is also a member of The Founders Society. He has also given guest lectures at
New York University New York University (NYU) is a private university, private research university in New York City, New York, United States. Chartered in 1831 by the New York State Legislature, NYU was founded in 1832 by Albert Gallatin as a Nondenominational ...
,
The Wharton School The Wharton School ( ) is the business school of the University of Pennsylvania, a private Ivy League research university in Philadelphia. Established in 1881 through a donation from Joseph Wharton, a co-founder of Bethlehem Steel, the Wharton ...
, and
Harvard University Harvard University is a Private university, private Ivy League research university in Cambridge, Massachusetts, United States. Founded in 1636 and named for its first benefactor, the History of the Puritans in North America, Puritan clergyma ...
.


See also

* Reserve Primary Fund


References


External links


The Reserve FundDouble Rock Corporation
{{DEFAULTSORT:Bent, Bruce R. St. John's University (New York City) alumni Living people John L. Miller Great Neck North High School alumni 1937 births