Stevin Ray Hoover (born October 10, 1948) is an American businessman, writer, and former investment manager whose reputation as an investment advisor was tarnished by an investigation conducted by the United States Securities and Exchange Commission that led to an 18-month prison sentence in 2003.[1] In 1989, he was the founder of Hoover Capital Management, Inc. (HCM), a Boston-based investment management firm where he was CEO from 1989 to 2002, and Chestnut Fund LP, a private-investment fund founded in 2000.
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Biography
Early years
Stevin Hoover was born in 1948 in Franklin, Pennsylvania, (population 7,300) located in Venango County[1] in northwestern Pennsylvania. He attended Franklin's public school system and lived in Franklin until 1966 when he departed for The Millard School in Bandon, Oregon.
Education
In 1966-67, Hoover attended the Millard Preparatory School in Bandon, Oregon. Millard prepared him for entering the United States Air Force Academy, where he spent almost two years as a cadet from 1967 to 1969. He then attended the University of Texas at Austin, where he received his BA in 1971. Later he attended the Boston University School of Management, where he received his MBA in 1990. Between 1973 and 1978, while living in Germany, he also studied philosophy and German at the Universitaet Hamburg.
Career
Hoover practiced an investment approach best described as "concentrated value."[2][3][4][5][6][7][8] Before launching Hoover Capital Management in 1989, Hoover spent 15 years as a stockbroker, four in Germany, where he was a registered representative in the Hamburg, Germany, office of United States brokerage company Bache & Co., known in Germany as Bache Halsey Stuart Shields Model & Roland GmbH, and 11 years in Bache's Boston office.[9]
SEC investigation and criminal matters
The Boston office of the Securities and Exchange Commission (SEC) began investigating Hoover in early 1998. After several years of investigation, the SEC filed civil charges against HCM and Hoover on May 2, 2001.[10] On November 19, 2001, the SEC filed for a restraining order and asset freeze.[11] On April 24, 2002, the SEC added Chestnut Management LLC, manager of the Chestnut Fund LP, as a defendant and alleged additional charges.[12] By July 2002, Hoover's reputation was irretrievably damaged by the SEC's litigation releases and pending criminal charges. Therefore, he accepted a plea bargain offered by the Boston U.S. Attorney's Office. As part of this arrangement, he entered a guilty plea on August 7, 2002, before Judge Douglas P. Woodlock of the United States District Court for the District of Massachusetts to one count of violating Section 206 of the Investment Advisors Act of 1940. On October 31, 2002, he was sentenced to eighteen months in a federal minimum security prison facility, plus three years of supervised release. Hoover has completed both the federal prison sentence and the required supervised release[13] Prior to the white-collar crime conviction, Hoover had a 26-year history in the investment business devoid of any legal or regulatory taint.[14]
References
- ^ http://pacer.pcs.uscourts.gov/cgi-bin/range.pl
- ^ THE INVESTMENT PHILOSOPHY OF HOOVER CAPITAL MANAGEMENT, As Expressed In Stevin R. Hoover's MEMOS TO CLIENTS from May 1988 to January 1996
- ^ WORTH Magazine, March 1998; "Best of the Best" by Peter Lynch, pp. 66-74
- ^ Wall Street Journal, Wednesday, March 31, 1999. Heard In New England, "Buffett Dips Into MGI Again, But Now Some Pros Like His Idea."
- ^ WORTH Magazine, February 1999; "Peter Lynch & Company" by Peter Lynch, pp. 82-92.
- ^ WORTH Magazine, April 2000; "14 Hot Stocks From Peter Lynch and Friends" by Peter Lynch, pp.117-129.
- ^ Securities and Exchange Commission Form ADV, Hoover Capital Management, Inc
- ^ Company Updates, Hoover Capital Management Inc., February 1999, 67 pages.
- ^ Bache & Co was acquired by the Prudential Insurance Company of America and became known as Prudential Bache Securities, Inc., later renamed simply Prudential Securities, Inc.
- ^ http://www.sec.gov/litigation/litreleases/lr16983.htm
- ^ http://www.sec.gov/litigation/litreleases/lr17240.htm
- ^ http://www.sec.gov/litigation/litreleases/lr17487.htm
- ^ United States Probation Office release letter dated May 2, 2007, announcing termination of Hoover's supervised release as of April 21, 2007.
- ^ http://www.sec.gov/news/digest/08-08.txt
