Speaker Biographies - Foley & Lardner LLP

©2010 Foley & Lardner LLP
Examples of projects led by Mr. Daugherty involving these
other regulators include:
upon application to the Division of Trading and
Markets – organizing NCNB Capital Markets,
which became Banc of America Securities and is
now one of the largest investment banks in the
world;
in line with the Division of Enforcement –
recovering money for defrauded investors in the
Lancer Partners hedge fund, the largest "penny
stock" swindle in U.S. history; and
in close consultation with the Division of
Investment Management – inventing, with his
colleagues, the CurrencyShares Euro Trust.
Judged "the trade of the year" by SmartMoney
magazine in 2006, this was the first currencybased
exchange-traded fund ("ETF") listed on a
stock exchange anywhere in the world.
Continuous ETF Innovation. Mr. Daugherty and the Foley
ETF team have capitalized on the success of the Currency
Shares Euro Trust, noted above, by launching eleven
other currency-based ETFs, representing equity
investments in the Australian dollar, the Canadian dollar,
the Swiss franc, the Swedish krona, the British pound
sterling, the Mexican peso, the Japanese yen, the Russian
ruble, the Singapore dollar, the Hong Kong dollar and the
South African rand. All are managed by Rydex|SGI.
ETFs have been the most rapidly-growing form of
investment in the world, exceeding $1 trillion under
management today versus zero in 1992. This trend is
continuing as investors are entrusting more dollars to
ETFs than they are to mutual funds. Until 2008, however,
all versions of the ETF were "passive" investment
strategies according to which investors would buy shares
in a trust that would use the money to invest
systematically in an "index" of securities or commodities,
without exercising any judgment. The "holy grail" of the
ETF industry, in contrast, has been an "actively-managed"
fund, in which the managers of the trust would employ
subjective investment judgment in deciding what to buy,
sell or hold for the trust. For years, five major financial
firms raced to produce the first actively-managed ETF
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