May 8, 2007

DAVID (“Dave”) FRIEZO, graduated from the College of Arts and Sciences at Tulane University with a degree in Political Science in 1986. He is a member of the President’s Advisory Council at Tulane, and the principal benefactor behind the establishment of the Political Science Department’s first endowed chair, the Lydian Asset Management Chair in Political Science.

In December 2004, the partners of the Lydian Asset Management firm, departmental alumnus David Friezo, along with Andrzej Rojek, Bruce Gille, John Georgantas, and Thomas Kennedy, made a $2.5 million gift to Tulane University to establish the Lydian Asset Management Chair in Political Science. The following year, the Louisiana Board of Regents completed funding for the chair with a matching donation of $800,000.

Lydian Asset Management is a leader and innovator in global financial markets, specializing in equity-linked investments. The holder of the Lydian chair will teach and conduct research on the relationship between international finance and international relations.

In the aftermath of Hurricane Katrina, the University, the donors, and the department all agreed that the most vital contribution to be made from the fund’s income in the short term would be to devote it to the Tulane Rebuilding Fund. This arrangement will continue until the fall of 2009, when the first occupant of this endowed chair—to be identified in an appropriately international search—will assume his or her duties.

In April, 2007, Evan Bieber, a senior majoring in political science (and the recipient of the department’s “Senior Scholar” award for 2007), conducted a telephone interview with Mr. Friezo, reaching him at the headquarters of Lydian Asset Management in Westport Connecticut. The following are excerpts from Evan’s notes recording their interview:

How did you go from earning a political science degree to the world of hedge funds?

Mr. Friezo said that although it was less conventional when he was coming out of school in 1986, it’s more conventional these days for liberal arts majors to find their way to the investment world. His initial intention was to work a couple of years and then go to law school (and perhaps business school as well), but once he made it to Wall Street it dispelled his impressions that he needed a JD or MBA; the desire to succeed and smart decision-making were the keys to success, not credentials.

One of the defining moments in this process was during a position he took at Merrill Lynch. He went into it with the mindset that if the particular path he had chosen didn’t work out, he could always use the money he made to pay for law school. Yet he never made it to graduate school because as he began to advance in the financial world (and particularly on the trading side of things), he realized that it would only have impeded him.

How do you think your political science degree helped you along the way? What did you gain most from it?

Mr. Friezo credits his political science education at Tulane with imparting vital skills in critical thinking. In addition, he said that his political science degree (along with economics and Latin American Studies courses) gave him a global scope that has really prepared him for the world today. In addition to leading him to live in London and Japan, Mr. Friezo could not stress enough how vital this “global scope” was to him, considering that 50-60% (and sometimes more) of his business is conducted outside the United States, or with companies outside the United States.

Can you describe how and why you came to be involved in charitable work, not only through generously supporting Tulane, but serving on the board of the Fairfield County SAFE KIDS Coalition?

The driving factor for Mr. Friezo in his involvement with charities and non-profit work is the idea that it is “important for those that are fortunate to help those who are less fortunate. It is their responsibility.” In his estimation, being fortunate does involve being smart, but it also involves elements of luck, and because of that, it is important to give back. He and his company are involved in numerous children-related organizations, and one of his principal motivations is to give them a better chance in life. Some of the groups with which he and his company are involved in (in addition to the Fairfield County SAFE KIDS Coalition) include the Pediatric Center at Memorial Sloan-Kettering Cancer Center, the American Red Cross, Near & Far Aid Association, Robin Hood Foundation, Smile Train, Westport PAL, and Absolute Return for Kids (ARK), in addition to Tulane University.

Mr. Friezo’s humility in discussing the subject was quite refreshing and powerful. He mentioned how his employees and even some of their spouses have become involved in charitable work because he’s pushed for service to become central to the company culture. He says that you meet a lot of interesting people in the course of volunteerism, and it reminds you that you “don’t need to be economically successful to be successful,” or to make a difference. His genuine commitment to and passion about these numerous efforts really shined through during the conversation.

Are you involved in politics at all today? Any future aspirations?

Mr. Friezo said that when he was younger he was more of an idealist. Now, he feels that he can have more influence outside the beltway, growing his business and through volunteer efforts. He follows politics closely, however, on both a local and national level and he tries to meet with important policy makers. To enter politics himself is not high on the priority list at the moment. It does cross his mind every now and then, he acknowledged, but he feels he has lots of time left to make those sorts of decisions.
When I asked him if he had any predictions for the 2008 Presidential Election he said “Zero.” He just wanted someone who would “Lead the country in an admirable way.”

What would be your biggest piece of advice for someone coming out of Tulane with a political science, or other liberal arts degree, who is uncertain of what he or she wants to do?

Mr. Friezo counseled to “work hard, and work with integrity.” He said to speak the truth and have peripheral vision to see where the world takes you. Take chances, and being that nothing will come to you, perseverance will be a key factor for success.