Frederick S. Mates, aka Frederic Mates, founded in August 1967 the Mates Investment Fund, a high-flying mutual fund during the 'Go-Go' 60s that later crashed in the bear market of the early 1970s.[1] Mates ran his fund from an office he dubbed the "kibbutz" and with a young staff he called his "flower children".[1] Mates put most of his fund into a letter stock known as Omega Equities. Mates in determining his funds assets assigned a value to the barely traded Omega of $16 a share, while having purchased the stock at $3.25 a share. Mates got into trouble over this practice which was routine in the 1960s and not uncommon even today, of accounting for letter stocks at a price different from what was paid for it. As a result, when confidence was lost in Mates' mutual fund and investors wanted to cash out, redemptions had to be suspended for a while, which the U.S. Securities and Exchange Commission condoned.

Mates was born in Brooklyn and graduated from Brooklyn College in 1954. According to a New York Times obituary, Mates died in Kansas City on December 25, 1982.[2]

See also

Notes

  1. 1 2 Brooks, John (21 September 1999). The Go-Go Years: The Drama and Crashing Finale of Wall Street's Bullish 60s. John Wiley & Sons. p. 267. ISBN 978-0-471-35755-1.
  2. ↑ "Frederic S. Mates, 50, Mutual Fund Executive". The New York Times. December 30, 1982. Retrieved 14 August 2014.

References

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