SKBI Newsletter | October 2024 Challenges and Benefits of Diversity |
|||
Research Perspective |
Industry Insights |
||
Melvyn Teo |
Danny Yong |
||
The hedge fund industry is primarily interested in financial performance. Could diversity add value to such a competitive and savvy industry? According to the findings of a recent SMU study, the answer is yes. |
Identifying the characteristics or metrics contributing to a company, team, or individual’s success can be both important and challenging. In a recent meeting, Danny Yong shared his experience and opinions on these topics. |
||
Key Messages:
Collectively, the study shows that diversity creates value even in highly competitive and performance-driven industries, such as the hedge fund industry. Of course, fund founders may not be able to establish a diverse team at fund inception due to search frictions or their limited experience. However, diversity matters for the long-term operation and success of many asset management companies.
Lu, Y., Naik, N.Y. and Teo, M., 2024. Diverse hedge funds. The Review of Financial Studies, 37(2), 639-683. |
Key Challenges:
Overall, as Danny reckons, “Embracing diverse talent and technological advancements are crucial for asset management companies as they navigate the complexities of the market.” |
||
Meet the Author: |
Meet the Expert: |
||
About SKBI: The Sim Kee Boon Institute generates financial economic research through multidisciplinary collaborations involving not only the SMU community, but also research talent from around the world as well as industry and public-sector partners. The Institute will focus its efforts on the areas of (1) Market Innovations and FinTech, (2) Sustainability and Green Finance, and (3) Household Finance and Behaviour. To maintain relevance to finance practitioners and policy-makers, SKBI also adopts a view on Asian and global economic trends. View SKBI’s research. |
|||
About the SKBI Newsletter: This monthly newsletter provides a unique platform to connect academic researchers and industry experts. It aims to enhance the outreach of academic studies, while fostering dialogue on key insights and challenges and stimulating new ideas and collaborations. |
|||
© Copyright 2024 by Singapore Management University. All Rights Reserved. |
|||
SUBSCRIBE TO THE SKBI MAILING LIST*
Be alerted on SKBI news and forthcoming events.
*Please note that upon providing your consent to receive marketing communications from SMU SKBI, you may withdraw your consent, at any point in time, by sending your request to skbi_enquiries [at] smu.edu.sg (subject: Withdrawal%20consent%20to%20receive%20marketing%20communications%20from%20SMU) . Upon receipt of your withdrawal request, you will cease receiving any marketing communications from SMU SKBI, within 30 (thirty) days of such a request.