Don't Judge Me By My Skin Color?

As America watches the aftermath of the Zimmerman verdict play out and hears of all the ways in which the "system" is racist I'd like to share two personal experiences with racism.

The first story occurred just three years ago when we were attending an "Emerging Manager" conference in Chicago. Emerging managers are firms with less than $10 billion under management. The vast majority of asset management firms fall into this category including our firm.

The very first day of the conference we learned we were legally barred from doing any asset management business with any public entity in the State of Illinois. Believe it or not, Illinois actually has a law regarding emerging money managers that requires all emerging money managers hired by public entities to NOT be owned by white men. Below is a portion of the applicable legal language: Goals for Utilization of Minority-Owned Businesses, Female-Owned Businesses, and Businesses Owned by Persons with a Disability - ........1 Effective April 3, 2009, Public Act 96-0006 revised the definition of “emerging investment manager.” As a result, the current definition applicable to ISBI is found in 40 ILCS 5/1-109(4) and is defined as “a qualified investment adviser that manages an investment portfolio of at least $10,000,000 but less than $10,000,000,000 and is a “minority owned business,” female owned business or business owned by a person with a disability as those terms are defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.”

Let’s be clear. We were not denied rooms, water, or food service at the hotel where the conference was being held. However, we had been conned into paying a tidy sum to co-sponsor an event in a state where we were statutorily BARRED from winning contracts to manage public money simply because of the color of our skin.

Ironically the following year Spence Asset Management was named National Mid-Cap Manager of the Year by Emerging Manager Monthly Magazine.

Protest signs on racism should carry no weight anymore. This is 2013 and we don't just have fundamental equality for minorities in America. We have institutionalized racial discrimination in my profession and many others, specifically against white men. In the president's home state of Illinois, by law, we are pre-judged by our skin color rather than our achievements. Illinois is not an isolated case.

In my next post I'll share another story of a personal encounter with racism. It will serve as a useful explanation for why in no way should anyone feel responsible for the blind hatred held by others.