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Daryl, the STAT MAN!Reported By: Mac Chinsomboon Posted On: 9/16/2006
Boston, MA USA - Daryl, great job! Nice picture in today's WSJ! - Mac
URL for this article
URL for this article:
http://online.wsj.com/article/SB115813109459661786.html
THE BUSINESS OF SPORTS
Here Come the Technocrats
New owners have spent a lot of money for their teams. And they are turning to
a different type of executive to make sure it was well spent.
By RUSSELL ADAMS
September 16, 2006;PageR7
This past spring, the Houston Rockets hired a 33-year-old guy
with almost no playing, coaching or scouting experience to be the National
Basketball Association team's general manager of the future -- a move that
reverberated loudly in the basketball world.
In some corners, the hiring of Daryl Morey, a graduate of the
Massachusetts Institute of Technology (Sloan School of Management), part-time
business professor and former financial consultant, signaled the official
arrival in the NBA of the data-oriented approach to running a team chronicled in
"Moneyball," Michael Lewis's 2003 best-seller about baseball's Oakland A's.
Others saw it as evidence of an owner gone mad.
But at 226 Causeway St. in Boston, where the NBA's Boston
Celtics conduct business, the Rockets' move brought validation. It was the
Celtics that, three years earlier, had given Mr. Morey, then a financial
consultant who had never sniffed an NBA front office, his first job in
professional sports.
"It's so much fun trying to do things in a way they haven't
been done before," says Wyc Grousbeck, managing partner and governor of the
Celtics. "I didn't hire him thinking he was going to become an NBA GM. But why
couldn't a junior consultant become an NBA general manager?"
Striving for Efficiency
Since taking over the team in late 2002, the Celtics ownership
group has exemplified the challenges of bringing modern business sensibilities
to a tradition-bound franchise operating in a world historically averse to
change. They've replaced nearly half of the team's employees (some of those
through natural attrition), turned the ticket-sales operation into a
yield-management business that allows them to use inventory data to maximize
revenue, and built a small army of statisticians to unearth valuable information
-- on ticket sales and players' performance -- for the front office and coaching
staff.
It's a phenomenon playing out throughout sports in recent
years: Having spent astronomical sums on their franchises, a new breed of
aggressive, tech-savvy owners are demanding greater efficiency in an often
pathetically inefficient industry.
But they're not always well-received. The Oakland A's success
and "Moneyball" made baseball front offices around the league more open to
number-crunching general managers, setting off a turf war between these
outsiders and the baseball lifers who view their experience in the game as a
requirement for entry. And in the NBA, Dallas Mavericks owner Mark Cuban's
convention-defying approach -- whether it's turning the arena into an
all-purpose entertainment venue or exploring new statistical tools for measuring
player performance -- is part of what has made him one of the league's most
polarizing figures.
LINK to the photo:
www.chinsomboon.com/omac/images/wsj-091606-morey-sports.jpg
STAT MAN Daryl Morey and one of the Celtics' 16
championship trophies
The group of venture capitalists and private-equity investors,
who in 2002 paid a then-record $360 million for the Celtics, arrived at the
beginning of this sea change, but with the added challenge of melding modernity
with tradition. By then, the proud franchise of Bob Cousy, Bill Russell and
Larry Bird had fallen into a distant third in the Boston sports hierarchy --
behind baseball's Boston Red Sox and the National Football League's New England
Patriots. So when Mr. Morey mastered the NBA salary cap in a weekend while doing
a valuation analysis for the prospective owners, the group saw someone who could
help maximize an underleveraged asset.
"I said, 'Daryl, you're going to look pretty good in green if
you get this deal done,'" recalls Mr. Grousbeck.
Modernizing Ticket Sales
As senior vice president of operations and information, Mr.
Morey's first job was to modernize the ticket-sales operation. He tapped a
Cambridge company called StratBridge Inc. to install technology allowing the
sales team to visually analyze, in real time, who the customers are, where
they're sitting and what they're willing to pay for tickets. A 40-inch plasma
screen on the wall of the sales office shows a map of the TD Banknorth Garden,
with each seat rendered a different shade to indicate availability and sales
patterns. The 25-person sales team uses that data to study buying trends and
develop promotions -- sometimes just hours before the start of the game -- to
sell unused seats.
"It's about finding the right seat for the right price for the
right person on the right night of the week," says Rich Gotham, the team's chief
operating officer. "It's not rocket science."
Since the new system was implemented a year ago, Mr. Gotham
says, the team has doubled its group-sales business and remained at the top of
the league in individual ticket sales. But he adds that it's not all about the
technology; they've significantly increased their sales staff as well.
Scott O'Neil, the NBA's senior vice president of marketing,
says 22 of the league's 30 teams have since adopted the same system. "The
Celtics are one of the most forward-thinking, innovative and creative teams when
it comes to using data and taking the analytical approach to decision making,"
says Mr. O'Neil.
Evaluating Players
But basketball operations is where this approach might
ultimately produce the biggest rewards. Mr. Morey also had long explored
basketball analytics and had worked as a consultant at Stats Inc., a company
that provides sports statistics and analysis primarily to teams, leagues and
media outlets. At Stats, he had developed a way to apply the Pythagorean theorem
of baseball -- which predicts wins based on runs scored and runs allowed -- to
other sports. Mr. Morey offered to do statistical analyses for the Celtics,
which gave him the go-ahead to hire a small team of statisticians who would
provide input to the basketball operations and coaching staffs.
One of the first big projects was a regression analysis of 25
years of NBA drafts to determine which college statistics best equate with NBA
success at each of the five positions. The stats group now is developing a
similar database of European players, says Danny Ainge, the Celtics' executive
director of basketball operations, as well as an analysis of the composition of
NBA championship teams. But Mr. Ainge plays down the utility of statistics for
evaluating basketball players, saying it is "dangerous" to assume the numbers
can tell you everything.
"I still am in favor of the old-fashioned way of spending time
and studying players," says Mr. Ainge, who adds that the statistical information
is merely a complement to what the scouts say.
He says that his skepticism is, in part, a function of the
newness of this approach, and that data showing which combinations of players
perform best together have been helpful to head coach Doc Rivers and his staff.
For his part, Mr. Morey says he takes a balanced approach, and
that while he's "obsessive about testing beliefs about what helps a team win
using analytics," the foundation of his beliefs come from traditional
approaches. "I'm not someone who leads with numbers," he says.
For sure, the team so far has had mixed results producing a
winner -- on and off of the court. The Celtics have lost more games than they've
won in two of the past three seasons. And over that period, they've never been
higher than 18th in the league in attendance. This season might bring more of
the same, as the team remains light on stars and loaded with talented but
inexperienced players.
Team officials say that in sports, business only booms when the
team wins. The key is squeezing the most out of the asset when demand is low so
that you can maximize growth when the team is winning. The model for getting the
most out of an asset is just across town, where the Red Sox have squeezed every
last penny out of historic Fenway Park. In so doing, the Red Sox have opened
themselves to criticism from some baseball fans who see a front office full of
bean counters willing to stomp on tradition.
Emotional Investment
The Celtics' new regime has been similarly aggressive on the
business side, but team officials say they realized early on that they couldn't
operate the team like they operate any other business. Buying a season ticket or
a sponsorship, say team officials, is an emotional investment that demands
personal attention from the team.
"It's very much an interpersonal industry," says Mr. Gotham,
"and you can't just take a quantitative approach. The successful organizations
understand that pretty well."
The Mavericks' Mr. Cuban advised these owners early on to let
the fan base know that the owners are the team's biggest fans. Mr. Grousbeck is
such a staple in the stands and around the team that some of the players have
taken to calling him a clone of Mr. Cuban. At least it's not an act.
Mr. Grousbeck is a lifelong fan of the team. And in that, he's
far from alone among the ownership group. Stephen Pagliuca, a managing director
of Bain Capital, one of the biggest buyout firms in the world, is a Celtics
diehard with a basketball court in his house. Robert Epstein, a principal at
Boston real-estate company Abbey Group, is a graduate of Mr. Cousy's basketball
camp. And James Pallotta, a managing director at Tudor Investments Corp., plays
in a regular pick-up game at Harvard University's gym with several former NBA
players. Mr. Grousbeck has asked if he could play but was told he's not good
enough.
| Reunion PicturesReported By: Gulsun Bozkurt Posted On: 8/7/2005
All new slideshow of the 2005 Reunion - tons of pictures from many people. Please send yours to me if you have any and we will post. | Reunion 2005 Class NotesReported By: Daryl Morey Posted On: 7/16/2005
I had the great good fortune of not just surviving the crash but actually thriving! Through a series of fortunate events and circumstances for which I’m grateful every day I am now in a job I love at a very successful company in an industry I’m passionate about. I’d consider that a milestone! Another great milestone is I bought my first apt in San Francisco the week before reunion. Being back has been terrific. It feels like no time has passed. My favorite part has been the Back to the Classroom – reminds me how much I enjoyed my time here!
04:00 PM, 29 Jun 2005
by Tammy Cupples
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I moved to New York City in 2002 to take a marketing position at American Express. I’ve worked in product management for small business credit cards since then. I recently bought a co-op in Brooklyn. I enjoy seeing fellow class of 2000 Sloanies at American Express, playing bridge with Jacqueline Chang, having dinner in NYC with Melissa Moorhead, Holly Tang, and Robert Daniels, and visiting with classmates Ali Theodora Quiroga and Jack Busta and occasional trips to London.
03:59 PM, 29 Jun 2005
by Tammy Cupples
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I am MOT 2000 and looking forward to our 5 class year reunion with my classmates this fall. As may well be the case for most classes we feel we are the best MOT class and expect a great turnout leading to an outstanding weekend of re-acquainting, sharing of stories and new connections. (See Dave Weber to get a more aggregated view on what this reunion might look like.)
I went to MIT as a mid-career professional to augment my software development management experience with formal business training to open the aperture on possibilities for additional ways I could contribute at IBM. IBM sponsored me at MIT.
During my time at MIT I focussed my discretionary time on new venture creation, new venture finance, new venture law, venture capital and technology strategy. Further, I had many classmates involved in life sciences and their stories and the unfolding genomics work underway piqued my interest in the intersection of information technology and life sciences spaces.
I am currently in a stimulating business development position at IBM in the life sciences area especially focussed on creating business opportunity from technologies and learning from collaborative efforts between IBM in Rochester, MN and the Mayo Clinic (also in Rochester, MN.)
The IBM/Mayo collaboration focusses on deep computing (e.g. modeling disease), biomedical informatics (harnessing patient data) and individualized patient care to change the practice of medicine.
I am excited about the networking possibilities I have as an MIT alumni with expectations they will lead to conversations, relationships and opportunities that will be mutually beneficial to students, faculty and my fellow alumni.
03:58 PM, 29 Jun 2005
by Tammy Cupples
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After Chuck and I got married in October 2002, we bought a house north of Boston this past summer. I’m still consulting for PRTM but have been lucky enough to have my travel limited for the past year.
I’ve run into a couple of our classmates in the past several months: Lev Lesokhin in Bass Harbor, Maine over Labor Day weekend and Kevin Smith in New Haven, CT just before the holidays. Had nice chats with both of them - both seem to be doing well. Hopefully there will be more unexpected meetings in the next year.
As always, it’s been a pleasure to hear from everybody!
03:58 PM, 29 Jun 2005
by Tammy Cupples
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I’m keeping extremely busy. My Dad passed away in September of 2002 and life became a lot more complex. We finally had to decide to ‘divide and conquer’. Sergio, my brother, is now the General Manager of Logistika Labs (which by the way is doing very well! We’re up to 45 customers and they span each of the 5 Central American countries). I’m basically dedicating myself fulltime to the family and the family business. I’m working on 2 M&As, 1 Refinancing and 1 massive family reorganization project.
Right now we’re here at Rio Dulce celebrating New Year’s break with my Mom, sister, Stella and my in-laws.
03:56 PM, 29 Jun 2005
by Tammy Cupples
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The big news on my side is that I just got married to Lily two weeks ago in New Zealand! We'll be updating www.lilyandchung.com shortly with wedding pics.
Work-wise, no big news. Still at Elance, and running marketing for the online business unit.
03:54 PM, 29 Jun 2005
by Tammy Cupples
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Moved back to Mexico after spending some time in Miami following the dot.com dream. I'm now working for Microsoft. Recently bought a house. I'm taking up sailing and having a good time. Love to hear from you all. ( diegomol@microsoft.com)
03:52 PM, 29 Jun 2005
by Tammy Cupples
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Julianne (DiCenso) McHugh
I am still in central research at State Street Research and Management but I am now covering non-bank financials (which includes such fun industries as insurance, credit cards, and data processors). Surprisingly, I truly enjoy it but it is quite a difference from my previous retail industry coverage. In June I will take Level 3 of the CFA and hopefully will have that certification process behind me by summer-end. In terms of personal life, Kyle and I celebrated our first wedding anniversary in June and are enjoying our life together pre-children. We rented a ski house for the season at Sunday River, Maine so if anyone is in the area this winter, please let me know. We would love to meet up for drinks at the Grizzly. I hope all is well with everyone. My contact information is jmchugh@ssrm.com. I would love to hear from you.
03:52 PM, 29 Jun 2005
by Tammy Cupples
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2003 has clearly been a stirred year for me. It started with a new son in February (Gonzalo). This was clearly a surprise for my older son (Santiago) who was then 1 1/2 years old; but now they get along very well and they love playing together.
On the professional side things were also changing. We sold the company I was working for (NETikos, belonging to Telecom Italia), so I was basically out of a job for a few months. I took this time out to do what I like most: teach. For a semester I thought an Entrepreneurship class at the MBA of two universities in Chile. It was a lot of fun, but education does not pay very well in Latin America so I had to go back to real work.
A few weeks ago I accepted an offer to become the head of Intel Capital (Intel?s VC firm) in the Southern Cone (Chile, Argentina and Uruguay). The job is really interesting but going back to work for a large firm has proven more tiresome than I had expected.
03:51 PM, 29 Jun 2005
by Tammy Cupples
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My husband Steve and I have settled into our house in Richmond, VA. I've opted out of the work force for now to care for Justin, our 10 month old bundle of energy. He's currently napping (thankfully) which gives me time to write my update!
In my spare time I volunteer at the Junior League, job search for friends, renovate the house or hang out with the ex-professional-stay-at-home crowd. It's tough to keep in touch with Sloanies when you live in Richmond, but I had lunch with Homayoun in Boston (working crazy hours at McKinsey, moving to Paris), breakfast with Carl S. (happily married to beautiful MD), and lunch with John McLanahan (has a beautiful Back Bay condo he's thinking of renovating). I attended Michael Rogol's Labor Day party at the Cape (he's doing a PHD at MIT in energy economics). I saw Jyothi when she came down to Richmond (she and Dave moved to Ohio and enjoy fabulous discounts at the Limited). I exchange occasional e-mails with Gulsun (starting an amazing tourist attraction in Turkey), Kathryn Cosgrove (CFO of startup in London), Ken Olson (enjoying the ex-pat life of IBM Japan) and the new parent set: Al Evans' wife Martie, who has a beautiful 2 month old son, Darren Gibula's wife Linda, who has a gorgeous 1 year old daughter, and Riza Witzke, who has an adorable infant daughter. And I get to see Joe and Ros Karlin on occasion, who have an amazing 1 year old daughter.
Hope everyone is doing well. Send me an e-mail if you're coming down to Richmond, want to see cute Justin pictures, or have advice for new parents! lisa_sunwoo@alum.mit.edu
03:50 PM, 29 Jun 2005
by Tammy Cupples
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so yotam is almost two and is growing fast, spreading love and tenderness everywhere :-) hilla is about to complete her masters in education at harvard and is thinking of what she wants to do next. i'm still at omniguide, working hard and enjoying it. we're in the process of raising another round of funding, beta testing our fibers, etc. - so there is quite a bit going on.
03:48 PM, 29 Jun 2005
by Tammy Cupples
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I really don't have a lot of an update, except that we bought a house right next to Daryl Morey without knowing he lived there! Well, it's actually like 200 yards away, but still....
I have survived the "interesting" last three years at Battery and finally we are starting to see the light at the end of the tunnel! Can't wait...
03:48 PM, 29 Jun 2005
by Tammy Cupples
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I am still working at CSFB on the trading desk, living in New York, and I suppose my only relevant news is that I got married this last September and all is well.
03:47 PM, 29 Jun 2005
by Tammy Cupples
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Personally, I am doing quite well. I moved back to Bulgaria in 2001 and now I work as the CEO of one of the leading software and IT consulting firms in Bulgaria, TechnoLogica.( www.technologica.biz) My contact info is in the alumni database.
03:47 PM, 29 Jun 2005
by Tammy Cupples
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Here's a synopsis of my life.
1) I've been living in NYC's E. Village with Boy of Dreams. Am absolutely, positively Loving NYC, and can't believe I've never thought of living here before.
2) I've been working with a partner to start a venture fund that acquires and re-vamps undervalued apparel brands. Until the fund is in place, we're using a network of private equity firms to help us do the acquisitions, and partner design and licensing firms to help us extend and manage the acquired brands.
3) Have taken lots of exciting trips in the last couple of years, mostly enabled by extra frequent flyer miles and some business travel: Addis Ababa to consult to the Minister of Health of Ethiopia for two weeks in February, 2002; then cross-continent to Accra, Ghana to meet my boyfriend for 2 weeks (for our first real date); we spent a week in Montreal and Vermont in September, 2002 for the first gay wedding ever recognized by the NY Times in its "Weddings" section; and took a 2-week vacation to Italy in June; all punctuated by trips around the US. Things are slow at work in Dec-Jan, so I'm about to start on another bout of travel: back to Rome next week, followed by a week in Miami, another 2 weeks in Ghana, and a week in Switzerland for the World Economic Forum, all winding up in late January. Woo hoo!
I think that's about it. I'm happy and healthy.
03:46 PM, 29 Jun 2005
by Tammy Cupples
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Not a whole lot new with me. Still working at the same place where I have been for the past 2 1/2 years -inCode, a small wireless consulting firm. We pretty much do the whole range of wireless from deploying networks and all aspects of the technical side of the biz, to the standard strategy consulting stuff.
Still living in the same place too - Hermosa Beach, CA. Sean Hinners had been my roommate but he recently moved to London. I see Kriss Foss fairly often (she lives in Newport Beach) and the other LA Sloanies from time to time (had dinner with Ramon Frausto and Anthony Yannatta a couple weeks back).
03:43 PM, 29 Jun 2005
by Tammy Cupples
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Austin, TX USA - We are doing well here in Austin. Our daughter Alexandra is our joy in life; she is now 16 months old and loves to hang out with Daddy. I continue to work at SBC although I am in a new business unit. We occasionally get together with Sloanies here in Austin. Hope everyone is doing well.
03:43 PM, 29 Jun 2005
by Tammy Cupples
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Dear friends,
I hope this email finds all of you well wherever you are. These last few days have been very sad as I am struggling to cope with the terrible news from the South East Asia Disaster.
Nevertheless, I want to use the end of the year as an opportunity to send you the annual update of my whereabouts coupled with my best wishes.
My private life was characterized by Maximilian growing from baby to toddler. In January 2004 - almost exactly on his first birthday - he made his first shaky steps on his own. Now he can already climb so well that he needs to be rescued from windowsills (alternatively tables, cupboards, fences, chairs, etc.) multiple times per day. Franziska and I will have to increase our surveillance level even further as he demonstrated today that he is now capable to open doors.
Over the year, also his communication abilities grew at an amazing pace, surely helped by Franziska's incredible ability to understand or guess most of his utterances correctly. His latest achievement are phrases with four words (a small achievement for mankind but a great achievement for him!). One of his favorite pastime activities is visiting museums with his dad. Luckily we live within walking distance of the world's largest science museum. His favorite exhibits are currently helicopters, fire engines and a room with lots of drums.
On the professional side, I changed employers in April, but hardly changed my desk. I am now head of marketing digital TV at Kabel Deutschland, the world's second largest cable company serving 10 million households in Germany. Those of you who read (and remember) my annual updates may recall that I have followed the destiny of this company for quite a while already as a consultant: from June 2002 onwards I advised a group of investors and the management team in the acquisition of the company and since March 2003 I was part of the digital TV task force preparing the introduction of new pay TV packages. With the job change came new responsibilities - I was able to recruit a team of experienced marketers and to employ some of Germany's leading creative agencies to launch a new pay TV package in the German TV market. One of the most exciting aspects of my new job is running a nationwide TV ad campaign featuring the most credible testimonial we could find, i.e. we made the TV set itself address the viewer stressing the advantages of our product. The experience has been very rewarding as I have been privileged to follow the project from the first concept slide to fruition.
All the best for you and your loved ones in 2005
03:42 PM, 29 Jun 2005
by Tammy Cupples
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Alejandro and I lived in Boston until November 2003. Since then, we have been living in Santo Domingo with our 1 and half year old son, Gabriel. I am currently working with my family in the cattle ranch and in projects related to the tourism sector. Alejandro and I recently created our own consulting firm and we are beginning to form our portfolio of projects.
I hope everything is going well with everyone! We would like to attend the reunion.
03:35 PM, 29 Jun 2005
by Tammy Cupples
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Lorien Moore (formerly Ryan)
Life has been very busy for me over the past couple months, but first, I'll tell you what has been going on since graduation.
In the summer of 2000, I returned to Michigan to work for Ford Motor Company in their Marketing Leadership Program. I spent one year working in Corporate Advertising (a great job with lots of good perks) and a second year as a Sales Rep in the Boston Region (I sold cars to dealers - not so many perks) Sales was meant to be a rotational assignment and I was supposed to return to Michigan, but decided to stay in Boston instead, so I left Ford in 2002. I married David Moore August, 2002 in Ireland and we had a great honeymoon in the South of France.We bought a house in Lexington, MA and have settled into the suburban lifestyle.
I started working for Gillette April 2003 as a "Forecasting Manager" - basically I made up numbers all day. I will be starting a new position in Product Management this summer after I return from maternity leave....
Yep, I had a baby! Jacqueline Layla Moore was born on November 16, 2004 - she was almost 2 weeks early, but still weighed 7 lbs. 6 oz. We have many pictures on our website http://www.davidgmoore.com/ (click on the media tab on the left to see the photos.)
So that's me up to date. Currently I have a very simple life - diaper changing, playing, and feeding Jacqueline.
Cheers!
03:32 PM, 29 Jun 2005
by Tammy Cupples
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I'm still working at Intel (ever since Sloan), although in different roles. I moved to a new group within Intel earlier this year and my new role entailed quite a bit of traveling so I've been all over the country this year, which was tiring but quite fun as well. Managed to catch up with a bunch of Sloanies when I was in NYC. I also took a vacation to Spain and France in September and had a blast! It's hard to believe it has been almost five years since we graduated! I definitely plan on attending the reunion next year and look forward to catching up with everyone!
Best wishes for you and your family for a Happy New Year!
Elizabeth Lin
03:31 PM, 29 Jun 2005
by Tammy Cupples
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Mini Reunion in London
With the 5 Year Reunion approaching, a group of Sloan Class of 2000 alumni based in the UK and Ireland held a pre-5 year Reunion social gathering on the 18th of March in London. Among the attendants there was Kathryn Cosgrove, Amyn Husain, Jack Busta, Juan Ibinarriaga, Rafael O. de Jesus and Thomas Meinl (Class of 1999). Some of them had not met since leaving Sloan in the year 2000, so the event provided a good setting for going down memory lane to revisit the activities like the graduation sailing trip. Most them plan to catch up again in the upcoming 5 Year Reunion event at MIT in June.
03:30 PM, 29 Jun 2005
by Tammy Cupples
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I’ve been busy with my 2 daughters. Lara is 20 months. She started school 2 months ago and is already talking. As most toddlers, she is not easy to deal with.
Julie is 4 months and with all the know-how acquired from the first one, this one has been really easy. My husband Amaury is also doing great. He started his own business, a hedge fund named Capitania about 2 years ago.
I am still on a maternity leave from work, but planning to go back to my family business. I’ve been working with real estate development and property management since 2002. (See our latest project at www.mofarrej.com.br).
I really wanted to attend the 2005 reunion, but first I have to wean my baby, so I may miss it.
03:29 PM, 29 Jun 2005
by Tammy Cupples
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Here are the news from the jungle, written while I?m drinking Guarana soft drink and laugthing at the dolar volatility in the international market:
- Still married with Madalena, living in Sao Paulo;
- 3 children: Bruna (3 year old girl) + Caio (4 month old boy) + Artur (4 month old boy) - I?m sure you are smart enough to conclude they are twins;
- Still working at Itau Bank, Managing Director at the treasury sales desk, focused on OTC derivatives;
- I?m not sure I?m going to Boston next spring. Tha kids are to young to go with us or to stay without us. Let?s see...
03:24 PM, 28 Jun 2005
by Tammy Cupples
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