Michael Krause
From Bulletin Board Systems (BBS) to Billion-Dollar Funds
The journey to success is rarely linear, and for one Rady School of Management alum, it has been a winding road full of entrepreneurial spirit, creativity, and a sharp talent for finance and technology. Michael Krause (MBA ’12), co-founder of Counterpoint Funds, is a prime example of how harnessing both the creative and analytical sides of your brain can lead to personal fulfillment and career success. His story isn’t just about building a successful financial business; it’s about recognizing and harnessing his unique talents, learning from past experiences, and using them to drive his future success.
Early Hints at a Bright Future
Krause’s entrepreneurial journey began long before his time at Rady. At just 12 years old in his hometown of Cleveland, Ohio, he became a teen tech pioneer, launching a bulletin board system (BBS), an early form of social media that introduced him to the digital world. By the age of 13, he took it a step further and launched an Internet Service Provider (ISP), convincing 15 BBS members to pre-pay for internet service. "In 1993, I was already diving into the internet, setting up my own network. That was the beginning of my passion for technology and innovation," Krause recalled. He learned valuable lessons from the owner of his internet provider, a brilliant yet eccentric Polish immigrant who mentored him on how to set up an ISP. With the technical side in place, Krause turned to his older brother for a small investment to help fund the business. “From there, I became the network administrator for my BBS customers. Over time, the business grew to 8,000 customers and about 25 employees, and we even received significant press coverage due to my age at the time.”
Fast forward to his early twenties, and Krause’s career took another unexpected turn - he pursued music, studying at Yale. However, he eventually changed paths back to business. "I love the piano, but I wasn’t made for a career in music," he admitted. It wasn’t all for nothing though, his love of music led him to meet his future wife during music school.
Krause made his way to San Diego, where he worked toward completing his undergraduate degree in economics at San Diego State University, followed by an MBA from Rady. “By the time I was 28, I knew I needed to go back to school. That’s when I discovered my passion for investing,” Krause shared. His decision to pursue an MBA at Rady was fueled by a desire to bridge the gap between his entrepreneurial spirit and his newfound passion for finance.
How Rady Helped Assemble His Winning Team
Rady was more than just an academic pursuit for Krause. It was a launchpad for his career and the place where he would meet key individuals who would help shape his future. One of the most significant connections was with Joey Engelberg, a professor of finance at Rady. "Joey and I hit it off from the start. We did independent research together, and our partnership evolved from there. It was a great blend of academic learning and real-world application," Krause explained. Engelberg’s mentorship, combined with Krause’s tech-savvy background, led to the creation of Counterpoint Funds in 2014, a company that now manages nearly $3 billion in assets. Krause’s successful business partnership with his brother Daniel during his teen years continues at Counterpoint, with Daniel leading the sales and marketing organization, while he focuses more on the quantitative finance and technology side of the business.
"Rady was pivotal in enabling me to meet my objectives. It wasn't just about networking, though that played a role. It was about acquiring the right skills, understanding the language of finance, and learning to test strategies," Krause reflected. His MBA experience was more than just the classes he took; it was about the real-world knowledge that he could directly apply to his work. And at the time, it did just that, with an internship at Sempra Energy leading to a full time role in SDGE’s enterprise risk management department before he focused all of his energy on Counterpoint.
"Rady was pivotal in enabling me to meet my objectives. It wasn't just about networking, though that played a role. It was about acquiring the right skills, understanding the language of finance, and learning to test strategies."
Today, Krause wears many hats as the founder and co-portfolio manager at Counterpoint Funds. "I’m still very hands-on with technology. We built a custom app for our team that tracks all of our sales processes, and I collaborate with its developer, who happens to be a Rady friend and classmate, to continuously improve it," Krause shared. In fact, several Rady alumni are full-time employees at the firm.
For prospective students, Krause’s story reflects the power of pursuing an MBA with a clear sense of purpose. "I’ve always believed that you shouldn’t just get an MBA to check a box. You need to develop expertise in a specific area that you’re passionate about. Whether it's finance, marketing, or data science, building real expertise is what will set you apart," Krause advised. His journey underscores the importance of finding a program that allows you to grow both personally and professionally, and Rady’s focus on practical experience and networking helped him do just that.
"You need to develop expertise in a specific area that you’re passionate about. Whether it's finance, marketing, or data science, building real expertise is what will set you apart."
Krause's advice for future MBA students considering a career in fund management is simple: "Don’t just follow the conventional path. Focus on what you’re truly passionate about and pursue it relentlessly. And network, because the relationships you build at business school can be as valuable as what you learn in the classroom."
Looking back on his time at Rady, he is grateful for the opportunities it provided. "I might have had an unconventional path, but I really maximized my time at Rady. I wasn’t just there for the degree; I was there to make real connections and gain the knowledge I needed to succeed." From a teenage tech entrepreneur to managing billions in assets, Krause’s journey is a success story that highlights the impact of education, determination, and strategic partnerships. His path proves that success doesn’t always follow a straight line - sometimes the detours and unexpected twists are the very experiences that shape us and guide us to where we’re truly meant to be.
