Alumni Profiles Series: Diego Valderrama

Diego Valderrama earned his bachelor’s degree in economics from Cornell University and his M.A. and Ph.D. in economics from Duke University. Currently the vice president and deputy director of research at Franklin Templeton Investments, he leads macroeconomic and investment research that spans advanced, emerging, and frontier markets. Before joining Franklin Templeton, Dr. Valderrama served as an economist at the Federal Reserve Bank of San Francisco. Beyond his professional work, he has been deeply involved in community service, serving for almost a decade on the board of Support for Families of Children with Disabilities, including as board president. 

How would you describe yourself today, both professionally and personally?

Professionally, I consider myself an economist. I studied economics in undergraduate, got my Ph.D. at Duke, worked at the Federal Reserve Bank of San Francisco, and now I'm deputy director of research and senior research analyst at Franklin Templeton. Personally, I'm very much a family person, married for over 20 years with two children. I enjoy cooking, traveling internationally, and living in the diverse city of San Francisco.

Looking back, how did your time at Duke shape how you think about economics and research?

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My education at Duke was extremely important. It gave me a framework to think about the world. Economics is more than just tools: it's a framework for approaching questions about countries and making them manageable. Sometimes it takes years after learning tools to understand their deeper meaning. I was talking with my dissertation advisor (Enrique Mendoza, now at University of Pennsylvania) last year and mentioned that it took me about ten years after finishing my Ph.D. to truly understand some concepts deeply. A Ph.D. program teaches you how to teach yourself, which allowed me to keep learning from what I initially learned for many years afterward.

Tell me about the transition from Federal Reserve to Franklin Templeton. What were the biggest mindset shifts between public and private sector economics?

At the Federal Reserve, I was doing academic research, writing papers that could take years to finish, and helping with monetary policy. Moving to industry meant covering many more countries with issues that change constantly. In academia, you can spend years on one problem, but in my current role, I need to provide answers quickly as the world changes. In the private sector, I'm making investment decisions that affect thousands of people's savings, so there's a more direct impact. We're making medium-term investment decisions rather than high-frequency trading, which aligns well with my economics background.

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What's one recent development in the world economy that has captured your attention?

The trade wars have been particularly interesting. As fiduciaries for people's savings, we need to keep a cool head and think globally about how these developments affect different countries—for example, how U.S. policies and responses from China and Europe might impact countries like Vietnam, Brazil, Uganda, or Uruguay. We need to consider these impacts from a global perspective rather than just a U.S. perspective to make good investment decisions for our investors across different countries.

Tell me about your volunteer work coaching baseball for children with disabilities. What do you enjoy most about it?

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I've been coaching for about seven years in a league that runs from mid-March through mid-June for children with physical or intellectual challenges. My older son, who has a disability, started playing about ten years ago. Despite not knowing much about baseball, I know the kids, their names, and how to get them excited and organized. Unlike typical U.S. sports with pressure to win, this league focuses on participation and enjoyment. Seeing the children happy and achieving success through their effort rather than the score is incredibly rewarding. It's also wonderful to see parents watching their kids truly happy.

For Duke students who want to build meaningful careers in economics or finance, what skills or mindset would you say are most important today, given the rapidly changing world and AI?

Even with AI, which is like a more powerful calculator, you still need to understand the deeper meaning of economics. AI can make you more efficient, but you still need to evaluate whether the answers are good. Take time to understand what your professors are teaching you beyond just the mechanical aspects. You need to find something you both enjoy and are good at. Also, don't overlook communication skills: you may have answers, but if you can't explain them to people, you'll get stuck. AI cannot replace the ability to communicate effectively.

What’s a favorite memory or tradition from Duke that still makes you smile today?

Going to a Duke-Carolina basketball game at the end of the regular season. I was in awe, feeling the energy not just emotionally but physically—feeling people screaming created a powerful sensation. My advice is to take advantage of unique experiences while you can because life moves fast and sometimes you don't get a second chance. If there's something you want to do, you should do it.

Author

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Troy Tien Nguyen

M.S. student, Quantitative Management: Business Analytics

Troy Tien Nguyen a master’s student in the MQM: Business Analytics program at Duke Fuqua School of Business, concentrating in risk. He is currently exploring careers in quantitative finance, data science, and product management. Outside of class, Troy enjoys lifting, journaling, and trying new experiences—most recently through tennis and golf classes at Duke.