The Latest
Sustainability in Practice - September 2021

Unprecedented opportunity ahead

The climate challenge requires new investment on a staggering scale: new generating capacity, the electrification of everything, emissions-free fuel, carbon capture and sequestration, new supply chains and infrastructure, plus the building of negative emissions technologies. Stanford’s Dr Arun Majumdar explores the opportunities for new investment, the risk return trade-off and how investors should approach the opportunities.
Research

Sovereign Development Funds: designing strategic investment institutions

The hunt for alpha is leading traditional investors toward more innovative strategies and operating models. And, significantly, one potential source of inspiration for long-term investors has come from an unconventional place: the community of sovereign development funds (SDFs). In this paper academics from Stanford University provide readers with analytical frameworks that can assist in the […]
Analysis

Investors must collaborate to innovate

Institutional investors are sheltered by competition, which in some instances can be beneficial, but it also means they are shielded from competitive forces that drive innovation. A new paper by Gordon Clark and Ashby Monk, looks at why the current model of either insourcing or outsourcing investment management doesn’t allow for innovation, and the models […]
INVESTMENT THINK TANK

PE LPs overweighting home-state is hurting returns

New research finds institutional investors favour investing in private equity general partners that are located in the same state as their organisation. This is intuitive as local knowledge and contacts attract investments. However research from Stanford University finds this bias is coming at a large cost – about $1.2 billion a year – particularly for […]
INVESTMENT THINK TANK

Active management: turning the argument on its head

One of the enduring areas of asset management academic study, and practitioner query, is whether or not managers have skill. In his work, professor of finance at Stanford, Jonathan Berk, shows the answer doesn’t lie in returns but in manager compensation.   Determining whether active skill exists is not the same as looking at whether […]
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