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Academic SeminarElimination by Aspects and Capital Allocation

  • Date
  • 2018-03-22 ~ 2018-03-22
  • Time
  • 16:00 ~ 17:30
  • Place
  • #9708
  • Department
  • 경영공학부 행정팀
  • Major
  • Finance

We would like to invite you to participate in Management Engineering (ME) Seminar.

1. When: March. 22nd (Thu.) 16:00~17:30
2. Where: Building 9, 7th, #9708
3. Speaker: Prof. Kim, Soohun (Georgia Institute of Technology)
4. Topic: Elimination by Aspects and Capital Allocation
5. Research field: Finance
* Lecture will be delivered in English.

We document a causal positive and significant effect of investment consultant screens on fund flows using novel data on consultant screening behavior. Consultants use assets under management (AUM) thresholds as a first stage screen of candidate funds. Funds that transition to just above the AUM thresholds experience an 8% increase in AUM over the next year compared to other funds near the threshold. This creates a strong incentive for funds to take on additional risk when just below the commonly used thresholds. We find that funds just below the main AUM threshold significantly perform better than those above.

Contact : Lee, Jisun ( jisunlee@kaist.ac.kr )