This collaborative research examines the relationship between hedge fund managers’ fee structures and the amount of risk taken and among other things finds a “high-powered incentive fee” encourages excessive risk-taking, while management fees have the opposite effect.
Research
The economics of hedge funds
Sustainability Harvard - September 2022
Kotkin: China bears may have been right about Western resilience
ESG-focussed investors are having a hard time justifying their China exposure to boards. They will need to develop new narratives if they want to stay in the China game, argues historian Stephen Kotkin.
Ben HurleySeptember 30, 2022
Sustainability Cambridge - April 2022
Net zero alignment: Assign portfolio managers strict carbon budgets
A new paper outlines how investors can align their portfolio to science-based carbon budgets consistent with 1.5 degrees of warming.
Sarah RundellMay 5, 2022
Research
The five characteristics of a future portfolio: CAIA
The traditional 60/40 portfolio allocation is no longer enough. The opportunity for alpha is not gone, but the low-hanging fruit has long been harvested, and the path toward higher absolute returns has gotten far more nuanced according to a new report from the Chartered Alternative Investment Analyst (CAIA)
Sarah RundellApril 5, 2022
Uncategorised posts
Limited talent pool hits diversity
Asset owners increasingly encourage their asset managers to improve diversity, but both owners and managers report the need to grow diverse talent coming into the investment industry, according to recent research.
Sarah RundellDecember 13, 2021
Research
Finance model says Biden will win
Joe Biden will win the US election according to a technique used in finance to predict factor returns and the correlation of stock and bond returns. The technique, outlined in an MIT working paper, correctly predicted the past five elections, including 2016.
Amanda WhiteOctober 30, 2020
Asset Classes
Alternative PE vehicles underperform
Alternative private equity vehicles underperform the associated main fund, new research from Harvard's Josh Lerner and MIT's Antoinette Schoar has shown for the first time - but skilled limited partners flip the script.
Amanda WhiteAugust 22, 2018
Research
Pensions’ flawed return forecasts
We all know past performance is not indicative of future results, but a new study finds evidence that US public pensions are basing performance forecasts on their own prior experiences anyway.
Amanda WhiteFebruary 8, 2018
