After graduating from Vanderbilt University he began his career as a trader at Enron. [34] Arnold also has been an influential supporter of Democrats efforts to pass a drug-price reform bill. Former Enron Corp. energy trader John Arnold is closing down his flagship Centaurus Energy Master Hedge Fund. That focus led Rolling Stone to call Arnold a young right-wing kingmaker with clear designs on becoming the next generations Koch brothers. (In 2015, Bloomberg suggested that Arnold may have somehow managed to become less popular as a philanthropist than he was as a billionaire trader. FILE - In this Aug. 5, 2009, file photo, John Arnold, then head of the hedge fund Centaurus Advisors of Houston, testifies before the The Commodity Futures Trading Commission in Washington,. But compared with the benefit of near-total anonymity, wealthy elites like the Arnolds are forgoing the tax advantages of a foundation or traditional nonprofit to further withdraw from public scrutiny. John Arnold: The most prolific philanthropist you may not have heard of. The tech giant is helping researchers and clinicians decipher vast amounts of data generated by people with persistent symptoms. [17] August 2008, Centaurus acquired around 10% of the shares of National Coal Corporation (NCOC). But as it happens, Nosek is just one of many researchers who have received unsolicited emails from the Arnold Foundation in the past few yearsresearchers involved in similar rounds of soul-searching and critique in their own fields, who have loosely amounted to a movement to fix science. Reflects change since 5 pm ET of prior trading day. A lot of people didnt know it was out there, Arnold says. NET WORTH: $3.3 billion . At least, not exactly. Billionaire philanthropists John and Laura Arnold committed Monday, April 5, 2021, to donate 5% of their wealth annually as part of an effort to . John Arnold's tweet, "A new study shows " are "the four most dangerous words," is a perfect crystallization of the philanthropist's skeptical attitude toward a lot of scientific research. The Arnolds' impact investing includes CivicaRx, which plans to manufacture 14 generic drugs and sell them cheap. The picture Taubes painted wasnt of a flawed study here or there but of a fundamentally broken scientific culture. $2.5 billion, according to our most recent tally. Unlike Tom Steyer, a billionaire who earned his wealth investing in oil and natural gas and now hypocritically blames those commodities for devastating the planet, John Arnold says little about climate change. Constitutionalists would add that the entire relationship is hedged in by the First Amendments guarantee of free speech, lest disclosure rules encompass an individuals right to support lawful causes of their choosing without facing public backlash for holding unpopular opinions. One of the counterparties Amaranth approached was Centaurus. 1.800.427.5747 Arnold has said that the first phase of his life was 100 percent trying to make money and that its now 100 percent trying to do good.. But he tells me that listening to Taubes and reading his book, Good Calories, Bad Calories, had been an aha moment for him. Corp En 2002, us su bonificacin para financiar Centaurus . The extent of that individuals ability to freely support causes may be magnified by using an LLC instead of a nonprofit, but it also further blurs the already faded line between philanthropy and politics. [16], During the collapse of Amaranth Advisors, Centaurus is widely credited as being one of the major players on the other side of their position, returning as much as 150% in 2005. [1], A 1995 graduate of Vanderbilt University, he completed a degree in mathematics and economics in three years. He questioned everything, Fleisher says. Centaurus entered the public eye in 2006 when Arnold bet against the enormous hedge fund Amaranth Advisors, which predicted that natural gas prices would rise and lost $5 billion when the market proved otherwise. It became extraordinarily frustrating.. And Noseks project was an attempt to head it off at the pass. In 2012, after growing his firm, Centaurus Advisors, from an initial $8 million to $5 billion in less than a decade, he announced that he was walking away to pursue other interests. The comedian John Oliver spent 20 prime-time minutes on HBO last May mocking the reign of terrible science on TV news shows and in public debate: After a certain point, all that ridiculous information can make you wonder: Is science bullshit? Hayek, Deirdre McCloskey, Elinor Ostrom, Walter Williams, or some of the other economists Ive profiled. To which the answer is clearly no, but theres a lot of bullshit masquerading as science. (Some of the background footage in the segment came from the Arnold Foundation.). A year after that, at age 22, he was overseeing Enrons Texas natural gas trading desk, one of the companys core businesses. In 2008, the young trader is among the top three traders who earned the most money, his salary amounted to $ 1.5 billion. His net worth of $10.2 billion landed him at No. Had something similar happened on Wall Street, he tweeted, the perpetrator would have been sentenced to 10 years in jail and the bank would have been fined a billion dollars. Those were the early days of the internet, and he managed to gain access to an online bulletin board intended only for card dealers. He's decided to shut down his firm Centaurus Advisors and return investor money, retiring at the ripe old age of 38, according to The New York Times.Arnold rose to prominence at now disgraced Enron for his natural gas trading prowess. A person who answered NGIs call at Centaurus said the firm was not making any comments or talking to reporters. No. 2023 Forbes Media LLC. . Comedian John Oliver spent 20 prime-time minutes on HBO last May mocking the reign of terrible science on TV news shows and in public debate. By all accounts, Laura, who attended Harvard College and Yale Law School and worked as an oil executive, has been equally influential in setting the direction for the foundation. The incentives to produce positive results were so great, Nosek and others worried, that some scientists were simply locking their inconvenient data away. [23] Other multi-million gifts followed to other education programs, for example to Washington, D.C. city schools for merit pay, to Teach for America, and to StudentsFirst. He was an entrepreneurial kid, earning some $50,000 before leaving high school by marketing collectible sports cards in the internets early years. As a pipeline company, Enron had a direct view onto many of the factors that influence gas prices. Guest: John Arnold is an American philanthropist and founder of Arnold Ventures. The 13 Best Electric Bikes for Every Kind of Ride, The Best Barefoot Shoes for Walking or Running, Palantirs Plan to Decipher the Mysteries of Long Covid. Because investigating and replicating research begins with having the data and materials necessary to do so, he is particularly focused on making science more transparent. World No. Amaranth, which was gambling with money from large pension funds, suffered a $6 billion loss and collapsed. In 2015, after a cancer researcher was found to have falsified research data and defrauded the government out of millions of dollars, Arnold complained on Twitter that the penalty, a five-year funding restriction, was too light. [52], , "Centaurus scoops up National Coal shares", Institute for Clinical and Economic Review, "The Young Billionaire Behind the War on Bad Science", "John Arnold Is Said to Close Hedge Fund and Return Investor Money", "When a billionaire trader loses his edge - The Term Sheet: Fortune's deals blogTerm Sheet", "Houston billionaire trader John Arnold retiring at 38 - Houston Chronicle", "Legendary Energy Trader John Arnold to Retire", "Hedge Fund Billionaire John Arnold's Fund Was Up When He Announced He Was Getting Out", "Ex-Trader at Enron to Retire From Hedge Fund", New York Times: "CORPORATE CONDUCT: THE TRADER; Enron Trader Had a Year To Boast of, Even If" By DAVID BARBOZA, "A speculator who is in for the long haul", "Centaurus's John Arnold: The king of natural gas - Nov. 24, 2009", "Meet the Texas billionaire who backed Philly soda tax and now is funding attack ads in N.J. Senate race", "Smart trades that made this a good year for some", "Centaurus scoops up National Coal shares", "John D. Arnold's CFTC (U.S. Commodity Futures Trading Commission) speech", "Houston's World Cup bid adds a power player in John Arnold", "A Thirtysomething Billionaire Couple Take on Tough Issues Via Giving", "The City Fund has given out over $100 million to support charter and charter-like schools", How a billionaire couple greased the skids for Nancy Pelosis drug pricing bill, "Why this billion-dollar foundation is becoming a corporation", "Changemakers: The Leaders Reshaping Communities Around the World", "Two Texas Billionaires Think They Can Fix Philanthropy", "A Billionaire Pledges to Fight High Drug Prices, and the Industry Is Rattled", "Obscure Model Puts a Price on Good Healthand Drives Down Drug Costs", "How a Billionaire Couple Greased The Skids For Nancy Pelosi's Drug Pricing Bill", "Laura and John Arnold Foundation to Restructure as LLC", "Why one billionaire is calling out Silicon Valley's favorite philanthropic loophole", "Are Donor Advised Funds Good for Philanthropy? ), Were not looking to create an organization of safe success, Laura Arnold says. But some experts are critical of this shift away from traditional giving, seeing in it a worrying trend in modern philanthropy. Featured groups, golf odds, expert picks plus matchups and props with information you can bet on. He and a graduate student were developing an online system that would allow researchers to keep a public log of the experiments they were running, where they could register their hypotheses, methods, workflows, and data as they worked. He also created Arnold Ventures, a philanthropic investment firm focused on health . Luce's career in natural-gas storage includes leading roles with energy and utility company Sempra Energy and with NGS Energy, a developer backed by billionaire energy trader John Arnold's Centaurus Advisors hedge fund. The aim was to redo about 50 studies from three prominent psychology journals, to establish an estimate of how often modern psychology turns up false positive results. 2023 Cond Nast. Hockey cards didnt have much of a market in Texas, he tells me. Like Nosek, Taubes had to Google Arnold to learn who he was. Since April 2011, Mr. Gibson has served as the Chief Investment Officer of Centaurus Capital LP (Centaurus), a private investment partnership with interests in oil and gas, private equity, structured finance, and the debt capital markets. But Arnold had to come down to earth eventually. [30] The new entity is known as Arnold Ventures LLC with the charter "to remove barriers between data and decisive action, working swiftly across the policy-change spectrum. It was the largest cash bonus ever distributed by the company. The legal reporting required for these categories, as annoying as it is, is how our democracy ensures that giving and political activity remain visible and accountable to the public. Abandoning traditional nonprofits in favor of LLCs may be the ultimate expression of donor privacy under the First Amendment, but it also means rejecting our philanthropic institutions at a time when so much of the nonprofit landscape is made up of policy groups. Worse yet, whenever evidence came along that contradicted the consensus about the dangers of eating fatoften evidence that was much stronger than the evidence for the dangersit was ignored or not even published. [44][45], Arnold has been accused of pushing for pension reform in response to a lawsuit the California state pension system, CalPERS, filed against Enron. [33] [28] From 2010-2013, the Arnolds were heavily involved in the Innocence Project which led to their interest in criminal reform. Arnold Ventures' John Arnold: Now is the Time to Reform Charitable Giving Laws. Laura and John established the Laura and John Arnold Foundation in 2010 with a straightforward mission: to improve lives through evidence-based solutions. Late on Saturday, September 16, Amaranth's senior energy trader Brian Hunter asked John Arnold, Centaurus CEO, whether the hedge fund would like to make a bid for some of Amaranth's positions. We can feed off that. Figuring out exactly which rewards work best and how to simultaneously change the incentives for researchers, institutions, journals, and funders is now a key area of interest for Goodman and Ioannidis. In 2007, Arnold became the youngest billionaire in the U.S. His firm, Centaurus Advisors, LLC, was a Houston-based hedge fund specializing in trading energy products that closed in 2012. Laura tells me she sees her husbands appetite for riskan appetite she says she sharesas the most obvious link between his approach to trading and philanthropy. [15], He then founded Centaurus, a hedge fund, with his previous year's bonus in 2002. The philanthropy's core mission is to invest in evidence-based solutions that maximize opportunity and minimize injustice. [26] In 2008, the Arnolds were original signatories of the Giving Pledge,[27] a pledge by some high-net-worth individuals to donate the majority of their income to philanthropic causes during their lifetimes. John Douglas Arnold (born 1974) is an American philanthropist, former Enron executive, and founder of Arnold Ventures LLC, formerly the Laura and John Arnold Foundation. Hayden Ludwig is the Director of Policy Research at Restoration of America. Arnold grew up in Dallas. For us, the principle of it is unchanged. . His ~$3 billion fund, Centaurus, was down 4% in 2010 YTD, according. New research shows that the cells garbage-clearing function deteriorates with ageand opens the door to reversing the process. Sam Apple (@samuelapple) teaches science writing at the University of Pennsylvania. Longevity evangelists are injecting people with experimental gene therapies. Why he started his own firm energy trading firm, Centaurus Advisors, and why he ultimately hung it up as a trader to focus all of his energy on philanthropy. Donald Trumps real net worth? In the sciences, one is mostly incentivized to publish journal articles, and especially to publish the sorts of attention-grabbing and controversial articles that get widely cited and picked up by the popular media. In the past ten years, we have achieved more success than I could have hoped for or imagined. Arnold entered the investment industry out of college by working for Enron, the infamous natural gas conglomerate that collapsed in 2001 following revelations of its vast accounting fraud. They are on record as agreeing with some of the critiques and focus on partnering with organizations to maximize their impact without undue influence. Regulators have to figure out how to get them on the market. Yellen warned inaction could have wide-ranging financial repercussions, including on taxpayers and the federal governments credit rating. In Hedge Hogs, a 2013 book about hedge fund traders, Jeff Shankman, another star trader at Enron, is quoted describing Arnold as the most thoughtful, deliberate, and inquisitive person he worked with on the gas floor. [47], John Arnold and his brother Matthew[48] tore down historical homes in the River Oaks neighborhood of Houston which led to criticism by architectural conservationists. To promote preregistration, the Center for Open Science offered the first 1,000 scientists who preregister their studies with the organization $1,000 each. A hugely successful energy trader, Arnold once worked at Enron, earning the disgraced company a reported $750 million the year it went bankrupt. A new edition of the record evokes the feeling of the remarkable 18th-century studio in which it was recorded. On a warm October day in 2014, envoys from 15 of America's wealthiest families gathered at Circle T, Ross Perot Jr .'s 2,500-acre ranch outside . In the 1830s, French writer Alexis de Tocqueville famously compared Americans penchant for civic association with that of France and England: Everywhere that, at the head of a new undertaking, you see the government in France and a great lord in England, count on it that you will perceive an association in the United States.. [8][12] His former colleagues dubbed him "king of natural gas. Usually the division of labor in most of our work is that I talk, Laura Arnold says in a phone interview. [50] She was formerly a mergers-and acquisitions attorney in Houston, Texas, and an oil company executive. I think I was just born with a natural gift for seeing numbers in a special way, he says. Or is Wall Street just an easy target while cancer researchers and universities are not?, So its no surprise that, in practice, the Arnolds approach to giving has a lot in common with John Arnolds approach to investing. The next year the Arnolds promised $35.5 million more. Ad Choices, John Arnold Made a Fortune at Enron. A 2016 study to determine the effectiveness of the badges showed that the number of articles that reported publicly available data had increased tenfold. But figuring out which organizations were most effective turned out to be vexing. Flagship Thirty-seven year old John Arnold, one of the world's youngest billionaires, had the worst year of his hedge fund career. Far from arbitrary, this body of regulationwhich Schambra is certainly right to call annoyingcodifies a common understanding between Americans and their government: Philanthropy is crucial for a healthy civil society. Houston-based Centaurus has been one of the most successful hedge funds in the industry, delivering a compound annual return of about 130% since it was founded by Arnold in 2002 after the collapse of Enron. After initially working on the Crude Oil desk, John moved over to the Natural Gas Desk upon the departure of Jeff . Updated: 12/31/2014 01:43 PM EST. Arnold Ventures is a group of more than 100 passionate people from all walks of life who feel a deep urgency to help people in need. Projects that Nosek had once envisioned as modest efforts carried out in his lab were now being conducted on an entirely different scale at the centers startup-like offices in downtown Charlottesville, with some 70 employees and interns churning out code and poring over research. As Nosek tells it, John Arnold had read about the Reproducibility Project in The Chronicle of Higher Education and wanted to talk. John John, Nosek learned, had made his first millions as a wunderkind natural gas trader at Enron, the infamous energy company, and hed managed to walk away from Enrons 2001 collapse with a seven-figure bonus and no accusations of wrongdoing attached to his name. Together with Taubes work, Arnold was also reading Ioannidis and Goldacres equally devastating analyses. You dont shift a culture overnight, Nosek says. Compared with the IRS-mandated transparency of a private foundation, 501(c)(3) public charity, or 501(c)(4) social welfare organization, private companies are black holes for public disclosure. [20][21] Arnold announced his retirement from running the hedge fund on May 2, 2012. The Centaurus founder could probably point to trades that made him a ton of money but you really can't put a price on avoiding the humiliation that would've come from . If they wanted to embark on truly transformational change, as their foundation literature states, it wouldnt be enough to properly evaluate this or that education or criminal justice program. By kindergarten, Arnolds talent for math was apparent. But as many Wall Street veterans can testify, betting against John Arnold is usually a bad idea. His estimated net worth is $3.3 billion as of writing. Media reports have declared the field of psychology, if not all of science, to be in a state of crisis. [46] Through his foundation, Arnold has aggressively promoted pension reform in the state of California based on a study his foundation conducted with Pew that failed to mention that Enron or the overall financial crisis contributed to the shortfall. Will NatGas Conference Call Schedule, This article is part of NGI's Daily Gas Price Index. On Fishbowl, you can share insights and advice anonymously with Centaurus Advisors employees and get real answers from people on the inside. Centaurus Advisors Awards & Accolades. A year ago, talk in the Texas energy hub was mostly about defending oil and gas and denouncing renewables, Arnold, 47, said Monday on his Twitter account. Arnold, who specializes in trading natural gas, is the former Enron trader who launched Centaurus in 2002 with the $8 million bonus he received from Enron after making the firm $750 million. John Arnold, one of the most profitable traders in the hedge fund industry, has decided to shut down his Centaurus Advisors and return money to investors, according to people familiar with.
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