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by Geoff Matthews

Looking back, David Patterson's '66 career has not been textbook. How did this student of political philosophy become the founder and CEO of a major "Bay Street" investment firm? The path may not be apparent, but one thing is abundantly clear. When this Trent grad sets his mind on a goal, he is going to achieve it.

Witness his company, Newcastle Capital Management Inc., which is today one of the largest privately owned investment management firms in Canada.

Witness also the impressive results delivered by the alumni division of the Beyond our Walls campaign. This division, which Patterson chairs, has exceeded its fundraising objective and continues to augment contributions.

Patterson downplays his leadership role in helping raise funds for Beyond our Walls, saying that the real praise belongs to Trent President Bonnie Patterson; Vice-President Susan Mackle; Tony Storey, Director of Alumni Affairs, and his staff; and, most certainly alumni who care about Trent and have made significant donations. Patterson adds that the Trent team and many alumni will not be satisfied until the whole campaign meets its target.

Patterson first came to Trent in the fall of 1966, graduating with a general degree in political philosophy in the spring of 1969. He came back two years later and finished his honours degree. In the interim, he directed a summer camp (where he and his wife, Anne, met) and implemented a youth program for a church in Lindsay.

Patterson says that he did not attend Trent with the intention of becoming an investment manager. In fact, at that time, he says, he didn't even know that there was such a thing as an investment manager. "I didn't learn finance or even basic statistics at Trent. I didn't learn about portfolios, derivatives or hedge funds. All of that came later.

"My years at Trent exposed me to superior thinkers and challenged me to think critically and to communicate clearly. It was a time to explore and discover what was possible and what captured my interests and imagination. I chose courses that I found fascinating English, philosophy, politics. Although there was no clear career path, I sensed then and I know now that these experiences established a priceless foundation, making many career paths possible."

Trent's small class size was also important, he said, particularly since he had grown up in very small towns. "There were only 500 students at Trent when I arrived, and I remember my first philosophy class with only five members. That gave us tremendous exposure to faculty and staff. The small classes also were conducive to thinking on our feet and making presentations - skills that have proven to be immeasurably important to me over the years. I am constantly reminded as I work with people in our own firm and across the industry that strong business skills flourish best when built on the thinking and communications skills provided by a solid liberal arts education."

He also credits Trent with stimulating his sensitivities to political realities and his passion for taking action. In fact, he dropped his courses during the 1969-70 school year to concentrate on a national effort to protest the civil war in the African nation then known as Biafra. In later years, he became an active volunteer in a worldwide organization committed to advancing developing countries.

His career path unfolded after he completed his honours degree at Trent 1972. Patterson moved to Toronto and entered the business world, gaining some experience in accounting, sales and operations. His first job in finance came in the 1976 when he began working with Canada Permanent (later Canada Trust) as a manager trainee. At about the same time, he began part-time evening studies towards an MBA degree at University of Toronto. Within three years, he was managing Canada Permanent's head-office branch, MBA in hand.

He moved into corporate banking with Bank of Montreal in 1981 and then joined Burns Fry (now Nesbitt Burns), where he later became president of a subsidiary firm in Chicago.

In 1989, Patterson founded Newcastle Capital Inc. and began pioneering solutions to the investment challenges faced by pension funds and RSP providers. Specifically, Newcastle developed the financial technology and the software to enable global diversification of investments without compromising Revenue Canada's foreign content limits.

"Over the years, Newcastle has brought many 'firsts' to the investment industry, and many of our innovations have quickly become standard practice," says Patterson. "We continuously develop investment strategies that change the way people think about how to achieve solid returns with lower risk. Our technology is sophisticated - derivatives, hedge funds, proprietary software, and statistical process engineering - and we are constantly developing the next 'first' to benefit our clients."

Today, Newcastle manages about $7 billion for large pension funds in Canada and the U.S., the endowment funds of some of Canada's top universities and major mutual fund sponsors. Patterson figures he logs 100,000 miles or more a year, travelling to Asia, Europe, across Canada and in the United States.

Newcastle has a staff of 30, including Patterson's wife, Anne, who also holds an MBA degree and is a vice-president of the firm.

Patterson could almost start a Trent alumni division within his own family. His brother, Stephen, came to Trent early in the 1970s, and two of Stephen's daughters have attended. Two other brothers have children who have graduated, two of them this past spring. Patterson's sister also sent two daughters to Trent, and several more distant cousins have attended.

His paternal and maternal families have recently created the Patterson-Drain bursary for Peterborough County students. "Peterborough County has been very good to our families and we wanted to give something back," says Patterson.

Patterson still keeps in touch with a few friends from Trent and has a number of contacts in the investment world who also attended the University.

Spare time is spent "reading, reading, reading, or delighting in two Airedale terriers who keep us pretty active." He is also interested in the origins of the universe and makes a hobby of studying the physics of astronomy and cosmology.

"There have been many twists and turns along the way, but I'm thrilled with my career path so far," says Patterson. "When young people ask me what courses to take to 'get into' finance, I suggest that they consider philosophy perhaps at Trent and then I explain why."