Active Management
As capital markets have continued to evolve the role of active asset management has changed. Increasingly investment decisions are made across a range of liquid, semi-liquid, and illiquid investment vehicles that span public and private markets. The Active Management Research Alliance seeks to better understand how the investment management process is impacted by the increased adoption of “alternative investments.”
The primary area of focus currently is the intersection of public and private markets and the role of hedge funds in the financial intermediation process. The Hedge Fund industry has grown to over 3 trillion USD in assets under management yet research on investment strategies and portfolio benefits related to hedge funds has lagged this growth. The deficit is largely due to low-quality data on funds because of limited public disclosure requirements. AMRA works with industry partners to expand the breadth and depth of hedge fund data available to academic researchers.
Latest Active Management Research
Activism and Empire Building
Working Paper
We focus on the role of activists in the market for corporate control and provide evidence that activists curb incentives to engage in empire building acquisitions, limiting the scope of one of the most destructive forces in public companies. More
Governance under the Gun: Spillover Effects of Hedge Fund Activism
Working Paper
Hedge fund activism is an important monitoring mechanism associated with substantial improvements in the governance and performance of targets. More
Informed Trading Volume and Asset Prices: The Role for Aggressive Investors
Working Paper
We examine the trading behavior of particularly aggressive investors, those who contribute the most to daily trading volume, and provide new evidence that is consistent with the presence of informational advantages. More