What to do with a sociology PhD: become the father of the hedge fund

A common question arises regarding sociology degrees: what can you do with that? The man behind the hedge fund, Alfred Winslow Jones, held a sociology PhD from Columbia University before going on to becoming a financial writer and inventor:

In fact, by the time the article hit the newsstands, Jones was already well in the process of setting up his own investment firm, A. W. Jones & Co. While reporting on the latest investment strategies, Jones had begun to contemplate a new approach, one that would include selling short some stocks in a portfolio as a way to protect against the market’s uncertainties.

Such a portfolio, Jones would explain to his investors, was a “hedged” fund..

In 1941, Jones received a sociology doctorate from Columbia University. For his research, he interviewed 1,705 residents of Akron, Ohio about their attitudes toward corporations and property. He found that, despite local labor unrest and political tensions, Akron was not divided rigidly along class lines. His dissertation was published as a book titled Life, Liberty, and Property, which became a much-used text in sociology circles…

Landau highlighted Jones as the man who had started this trend, noting however that the sociology Ph.D. “actually seems to be more interested in things other than finance,” including finding self-improvement alternatives to welfare and organizing a Reverse Peace Corps to bring foreigners to work with poor Americans. Jones was quoted complaining that “too many men don’t want to do something after they make money.” Many of Jones’s early investors, Landau wrote, were scholars, social workers and others whom Jones had met over the years and was trying to free from financial concerns.

Sounds like an interesting life. It would be fascinating to hear Jones talk about how his PhD in sociology helped push him toward his financial inventions and actions. Was it something about the way sociology views the world that helped him develop the idea of the “hedged fund”? Perhaps sociology gave him some unique insights into the operation of economic markets. Additionally, it sounds like Jones had some sociological thoughts about what one should do with an accumulated fortune: it should be put toward new social ideas and goals.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s