Steven B. Perfect, Ph.D., CFA

Associate Professor

Department of Finance
Rovetta Business Annex, Room 509
Florida State University
821 Academic Way
Tallahassee, Florida 32306
Phone: (850) 644-7868
E-mail: sperfect@cob.fsu.edu

Current Position

Current Duties

• Teach investments and derivatives courses in the MBA and MSF programs.
• Direct the operations of the FSU Student Investment Fund as faculty advisor.
• Perform original research and publish reviewed articles in academic and practitioner journals.
• Guide graduate students in original research and dissertation research.

Certifications

• Chartered Financial Analyst (1998)
• Six Sigma Black Belt (2009)

Education

• The University of Texas at Austin

• Oklahoma State University

Work Experience

• NextEra Energy Resources (formerly FPL Energy)

Senior Director, Option Trading & Quantitative Analysis (May 2006 - Jul 2012)

• Responsible for the management and staffing of three groups within NextEra Energy Resources: Option Trading, Quantitative Analysis and Risk Analytics.
• Managed NextEra Energy's Option Trading group consisting of energy derivatives traders and trading analysts. Responsible for all participation in option markets including pricing, modeling and trading. Group is active in a number of U.S. regions. Developed models for valuation of derivatives and other complex transactions, provided measures of VaR and other measures and supported other business units in any derivative related analysis required.
• Managed the Quantitative Analysis group and coordinated the group's response to modeling requests. The quant group is responsible for the development of advanced algorithms and models that support and advance the trading, asset optimization and full requirements segments of the business. Responsibilities included training and mentoring of junior analysts, providing expert opinion and consultation, performing ad hoc analysis, presenting findings and performing supervisory tasks such as hiring and budget planning.
• Managed the Risk Analytics group and assured the accuracy and integrity of the group's responses to pricing requests. The Risk Analytics group is responsible for pricing the structured transactions and full requirements transactions that cross the trade floor. Worked closely with Origination Group to coordinate the group's responses to intra-day requests to quickly price and evaluate structured transactions.
• Championed, designed, and staffed a profitable option trading function at NextEra Energy in 2006. Presented numerous times to upper management to secure approval for the trade initiative and built all supporting models for monitoring the resulting option porfolios.
• Created and administered a unit-contingent and hydro purchase business. Built all supporting models for entering these types of deals and drafted several presentations for management in support of the initiative.

Senior Director, Transmission Trading (Mar 2005 - Apr 2006)

• Managed group consisting of six financial energy traders. Responsible for the group's participation in FTR trading, basis spread trading and virtual nodal trading. Traded in MISO, NEPOOL, NYISO and PJM. Portfolios were comprised of both asset-backed trades and speculative trades.
• Developed and improved models to estimate real-time versus day-ahead spread differentials for the selection of profitable node portfolios for congestion and FTR trading. Projects included portfolio selection approaches using CVaR minimization, quadratic programming, neural networks and genetic algorithms.
• Developed methodologies for the estimation of forward curves at illiquid basis points and an associated quote decay methodology to incorporate stale quotes in basis estimation.
• Worked with full-requirements group to hedge retail positions in NEPOOL and PJM, manage short retail basis positions, and estimate basis costs for long-term load serving and wholesale RFP's.
• Coordinated with forward market trading group and asset managment group to achieve cost effective hedging of FPLE's monthly asset basis positions through FTR markets, ARRs and basis spread trading.

Director, Quantitative Analysis (Nov 2004 - Mar 2005)
Manager, Risk Analytics (Jan 2000 - Nov 2004)

• Lead group consisting of eight quantitative and senior quantitative analysts. Responsible for the group's development of quantitative models and risk exposure tools to facilitate energy marketing, energy trading, and risk management.
• Required to lead development of valuation models and translate approved models into code. Responsible for monitoring model performance and directing improvement and/or replacement as necessary.
• Worked closely with deal structuring and trading to provide valuations and coordinate the analytic group's responses to intra-day trading requests to quickly price and evaluate structured transactions. Supported origination by providing quantitative evaluation of the benefits and risks of entering structured transactions.
• Provided consulting to senior executives regarding appropriate risk tolerance, risk strategy, and risk analytic techniques for FPL Group.
• Supported trading group in developing optimal hedge strategies and tracking hedges on structured deals. Built models for the tracking of portfolio “greeks” and deal profitability.
• Developed PMI’s core models for valuation of all standard products offered by origination group including power and gas swaps, power and gas options, heat rate products, and shaped load products.
• Developed methodologies for forward volatility estimation and correlation estimation including FASB 133 hedge effectiveness measures reported quarterly for accounting purposes. Improved valuation of spread options by leading development of volatility skew adjustments to forward power volatilities.
• Developed PMI’s closed form and Monte Carlo based models for the valuation of full requirements deals that incorporate load following, ancillaries, capacity and other costs. These models have been used to value a large number of prospective and transacted deals.
• Developed the currently used models for the estimation of VaR for numerous trading strategies within trading organization. Built several models that estimate earnings-at-risk for individual assets as well as large portfolios with several technologies and contract types.
• Developed the models used for credit exposure by PMI credit group for sizing letters of credit and assessing potential credit exposure to counterparties. Implemented the use of “credit adjustment” in the valuation of all of PMI’s structured products to counterparties.

Publications

• "In the Firing Line - Valuation of Combined-Cycle Plants with Supplemental Firing Capability." Co-authored with Pamela W. Hubbard, in Energy and Power Risk Management - Natural Gas, (October 2001), pp. 14-16.
• "Optimal Corporate Hedging and Managerial Compensation." Co-authored with Shawn D. Howton and Kenneth W. Wiles, in the Journal of Financial and Strategic Decisions, Vol. 13, No. 2 (Summer 2000), pp. 45-56.
• "The Impact of Day-of-the-Week on IPO Return Autocorrelation and Cross-Correlation." Co-authored with Eric Higgins and Shelly W. Howton, in the Quarterly Journal of Business and Economics, Vol. 39, No. 1 (Winter 2000), pp. 57-67
• "The Time-Series Behavior of IPO Betas."  Co-authored with John D. Neill and Kenneth W. Wiles, in the Review of Quantitative Finance and Accounting, Vol. 13, No. 3 (November 1999), pp. 261-276.
• "Currency and Interest Rate Derivative Usage in U.S. Firms."  Co-authored with Shawn D. Howton, in Financial Management, Vol. 27, No. 4 (Winter 1998), pp. 111-121.
• "Managerial Compensation and Firm Derivative Usage: An Empirical Analysis."  Co-authored with Shawn D. Howton, in the Journal of Derivatives, Vol. 6, No. 2 (Winter 1998), pp. 53-64.
• "The Market Reaction to Straight Debt Issues: The Effects of Free Cash Flow."  Co-authored with Shawn D. Howton and Shelly W. Howton, in the Journal of Financial Research, Vol. 21, No. 2 (Summer 1998), pp. 219-228.
• "The Impact of Client Derivative Losses on Bank Derivatives Dealers: Evidence from the Capital Markets."  Co-authored with Jeffrey A. Clark, in the Journal of Money, Credit and Banking, Vol. 28, No. 3 (August 1996), pp. 527-545.
• "Event Risk Bond Covenants and Shareholder Wealth: Evidence from Convertible Bonds."  Co-authored with Terrill R. Keasler and Delbert C. Goff, in the Journal of Financial and Strategic Decisions, Vol. 10, No. 3 (Fall 1997), pp. 37-41.
• "An Analysis of Value Line's Ability to Forecast Long-Run Returns." Co-authored with Gary A. Benesh, in the Journal of Financial and Strategic Decisions, Vol. 10, No.2 (Summer 1997), pp. 1-10.
• "The Role of Alternative Methodology on the Relation Between Portfolio Size and Diversification."  Co-authored with Kristine L. Beck and Pamela P. Peterson, in The Financial Review, Vol. 31, No. 2 (May 1996), pp. 381-406.
• "Day-of-the-Week Effects in the Long-Run Performance of Initial Public Offerings."  Co-authored with David R. Peterson, in The Financial Review, Vol. 32, No. 1 (February 1997), pp. 49-70.
• "New Tests of Randomness in Futures Hedge Ratios."  Co-authored with Kenneth W. Wiles, in the Proceedings of the 18th Chicago Board of Trade Spring Research Seminar, (March 1995), pp. 207-231.
• "The Effects of Rebalancing on Size and Book-to-Market Ratio Portfolio Returns."  Co-authored with Patrick Denis, Karl N. Snow and Kenneth W. Wiles, in the Financial Analysts Journal, (May/June 1995), pp. 47-57.
• "Self-Tender Offers: The Effects of Free Cash Flow, Cash Flow Signalling, and the Measurement of Tobin's q."  Co-authored with David R. Peterson and Pamela P. Peterson, in the Journal of Banking and Finance, Vol. 19 (1995), pp. 1005-1023.
• "Alternative Constructions of Tobin's q: An Empirical Comparison."  Co-authored with Kenneth W. Wiles, in the Journal of Empirical Finance, Vol. 1, No. 3/4 (1994), pp. 313-341.
• "Hedging Floating-Rate Liabilities with Eurodollar Futures and Options."  Co-authored with Andrew J. Senchack, Jr., in Advances in Working Capital Management, Vol. 2 (Spring 1992), pp. 257-269.
• "Limited Futures Delivery Dates and the Firm's Optimal Hedging Policy."  Doctoral Dissertation.  The University of Texas at Austin.  Defended April 12, 1991.

Working Papers

•  "Refining a Value-Based Investment Strategy." Co-authored with Don R. Cox and Delbert C. Goff.
•  "Using q Ratios to Enhance the Incremental Information Content of Cash Flows." Co-authored with Ronald A. Stunda.
• "The Hedging Performance of Alternative Hedging Strategies." Co-authored with Kenneth W. Wiles.
•  "The Usefulness of Conventional Joint Cost Allocation Methods in Pricing Decisions." Co-authored with Ed McIntyre.
• "The Impact of Beta Randomness and Estimation Risk on Security Returns." Co-authored with Delbert C. Goff.
• "Cross-Hedging CD Rates with T-Bill and Eurodollar Futures." Co-authored with Andrew J. Senchack, Jr.
• "Eurodollar and T-Bill Futures in Hedging Financial Institutions' CD Costs." Co-authored with A. J. Senchack, Jr.

Papers Presented at National Meetings

• "Currency and Interest Rate Derivative Usage in U.S. Firms." Co-authored with Shawn D. Howton, at the 1998 Financial Management Association Annual Meeting, October 1998, Chicago, Illinois. (Refereed)
• "Autocorrelations and Cross-Correlations as an Explanation for the Observed Day-of-the-Week Pattern in Long-Run IPO Underperformance." Co-authored with Eric Higgins and Shelly W. Howton, at the 1998 Financial Management Association Annual Meeting, October 1998, Chicago, Illinois. (Refereed)
•  "Managerial Compensation and Firm Derivative Usage: An Empirical Analysis." Co-authored with Shawn D. Howton, at the 1997 Financial Management Association Annual Meeting, October 1997, Honolulu, Hawaii. (Refereed)
• "The Impact of Day-of-the-Week on IPO Return Autocorrelations," at the 1996 Financial Management Association Annual Meeting, October 1996, New Orleans, Louisiana. (Refereed)
• "The Impact of Client Derivative Losses on Bank Derivatives Dealers: Evidence from the Capital Markets." Co-authored with Jeffrey A. Clark, at The Federal Reserve Bank of Cleveland and the Journal of Money, Credit and Banking Conference on Derivatives and Intermediation, November 2-3, 1995, Cleveland Ohio. (Refereed)
• "Managerial Compensation and Optimal Corporate Hedging." Co-authored with Kenneth W. Wiles, at the 1995 Financial Management Association Annual Meeting, October 1995, New York, New York. (Refereed)
• "An Analysis of Value Line's Ability to Forecast Long-Run Returns." Co-authored with Gary A. Benesh, at the 1995 Financial Management Association Annual Meeting, October 1995, New York, New York. (Refereed)
• "New Tests of Randomness in Futures Hedge Ratios." Co-authored with Kenneth W. Wiles, presented at the 1994 Financial Management Association Annual Meeting, October 1994. (Refereed)
• "The Role of Alternative Methodology on the Relation Between Portfolio Size and Diversification." Co-authored with Kristine L. Beck and Pamela P. Peterson, presented at the 1994 Financial Management Association Annual Meeting, October 1994. (Refereed)
• "New Tests of Randomness in Futures Hedge Ratios." Co-authored with Kenneth W. Wiles, presented at the 18th Annual Chicago Board of Trade Spring Research Seminar, May 1994, Chicago, Illinois. (Refereed)
• "Dynamic Estimation of the Systematic Risk of Initial Public Offerings." Co-authored with John D. Neill and Kenneth W. Wiles, presented at the 1993 Financial Management Association Annual Meeting, October 1993, Toronto, Canada. (Refereed)
• "Alternative Constructions of Tobin's q: An Empirical Comparison." Co-authored with Kenneth W. Wiles, presented at the 1992 Financial Management Association Annual Meeting, October 1992, San Francisco, California. (Refereed)
• "Cross-Hedging CD Rates with Eurodollar and Treasury Bill Futures." Co-authored with Andrew J. Senchack, Jr., presented at the 1989 Financial Management Association Annual Meeting, October 1989, Boston, Massachusetts. (Refereed)
• "Hedging Floating-Rate Liabilities with Eurodollar Futures and Options." Co-authored with Andrew J. Senchack, Jr., presented at the 1987 Cash, Treasury and Working Capital Management Research Symposium, October 1987, Las Vegas, Nevada. (Refereed)

Papers Presented at Regional Meetings

• "The Market Reaction to Straight Debt Issues: The Effects of Free Cash Flow." Co-authored with Shawn D. Howton and Shelly W. Howton, presented at the 1998 Eastern Finance Association Annual Meeting, April 1998, Williamsburg, Virginia. (Refereed)
• "Refining a Value-Based Investment Strategy." Co-authored with Don R. Cox and Delbert C. Goff, presented at the 1996 Southern Finance Association Annual Meeting, November 1996, Key West, Florida. (Refereed)
• "Self-Tender Offers: The Effects of Free Cash Flow, Cash Flow Signalling, and the Measurement of Tobin's q." Co-authored with David R. Peterson and Pamela P. Peterson, presented at the 1993 Southern Finance Association Annual Meeting, New Orleans, Louisiana. (Refereed)
• "The Impact of the Issuance of Convertible-Putable Bonds on Common Stock Returns." Co-authored with Terrill R. Keasler and Delbert C. Goff, presented at the 1993 Southern Finance Association Annual Meeting, November 1993, New Orleans, Louisiana. (Refereed)
• "Financial Calculators and Performance in Principles of Finance Courses." Co-authored with Delbert C. Goff, presented at the 1992 Southern Finance Association Annual Meeting, November 1992, Jacksonville, Florida. (Refereed)
• "The Impact of Beta Randomness and Estimation Risk on Security Returns." Co-authored with Delbert C. Goff, presented at the 1991 Southern Finance Association Annual Meeting, November 1991, Key West, Florida. (Refereed)
• "Alternative Constructions of Tobin's q: An Empirical Comparison." Co-authored with Kenneth W. Wiles, presented at the University of North Carolina at Chapel Hill Finance Workshop, April 1991. (Non-refereed)
• "Basis Risks in Cross Hedges." Co-authored with Andrew J. Senchack, Jr., presented at the 1991 Eastern Finance Association Annual Meeting, April 1991, Hot Springs, Virginia. (Refereed)
• "Eurodollar and T-Bill Futures and Options in Hedging Financial Institutions' CD Costs." Co-authored with Andrew J. Senchack, Jr., presented at the 1988 Southern Finance Association Annual Meeting, November 1988, San Antonio, Texas. (Refereed)

Teaching Experience

• Florida State University

• FPL University

• Florida State University

• The University of Texas at Austin

• Oklahoma State University

Service to the Finance Profession

• Member, Board of Directors, Eastern Finance Association (1998-2001)
• Vice-President of Local Arrangements, Eastern Finance Association (1996-1997)
• Member, Financial Management Association Program Committee (1994, 1995 and 1996)
• Member, Outstanding Futures and Options Paper Selection Committee for the Financial Management Association Annual Meeting (1992)
• Session Chair, Financial Management Association Annual Meeting (1996)
• Session Chair, International Symposium on Small Business Finance (1993)
• Discussant, Financial Management Association Annual Meetings (1990 and 1993)
• Reviewer, Journal of Banking and Finance and Financial Management
• Instructor, CFA South Florida Level I and Level II CFA Review Program (Derivatives and Portfolio Management)

Honors and Awards

• Tenured at Florida State University (August 1996)
• Selected to Who's Who in Finance and Industry, 31st Edition, 2000-2001
• University Teaching Incentive Program (TIP) Award Recipient (1995)
• President's Travel Grant Recipient (1993 and 1995)
• Council on Research and Creativity First-Year Assistant Professor Award (1992)
• FSU College of Business Summer Research Grant (1993 and 1996)
• "Self-Tender Offers: The Effects of Free Cash Flow, Cash Flow Signalling, and the Measurement of Tobin's q," co-authored with David R. Peterson and Pamela P. Peterson, selected as the Journal of Banking and Finance's second best paper of 1995.
• Elected to the office of Ochlockonee River Soil and Water Conservation District Supervisor (1996)
• Appointed Chairman of the Board, Ochlockonee River Soil and Water Conservation Board (February 1997)

Professional Affiliations

• CFA Institute
• Financial Management Association

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