-- From: "gutmann-center(a)wu.ac.at" <gutmann-center(a)wu.ac.at> --
Reminder - INVITATION
The WU Gutmann Center cordially invites you to the forthcoming
WU GUTMANN CENTER PUBLIC LECTURE
(apologies for duplicated mails!)
Date: Thursday, March 09, 2017 4:00 pm
Location: Bank Gutmann, Schwarzenbergplatz 16, A-1010 Vienna
Speaker: Prof. Jonathan Berk
https://www.gsb.stanford.edu/faculty-research/faculty/jonathan-b-berk
Title: “Removing the Veil: How Money Management Actually Works”
Abstract
There is perhaps no question in money management as controversial as the question of
whether active mutual fund managers can outperform monkeys throwing darts. It has been
known for a long time that investors are no better off investing with the average active
manager than they are just indexing their money. Based on this evidence, many people
conclude that active managers lack skill. Yet the amount of money in active management has
grown enormously. If these managers have no skill, why do investors continue to invest
with them?
We argue that active fund managers are skilled and, on average, have used their skill to
generate about $3.2 million per year. Large cross-sectional differences in skill persist
for as long as ten years. Investors recognize this skill and reward it by investing more
capital in funds managed by better managers. These funds earn higher aggregate fees, and a
strong positive correlation exists between current compensation and future performance.
About Jonathan Berk
Jonathan Berk is the A.P. Giannini Professor of Finance at the Stanford Graduate School of
Business (GSB). His research covers a broad range of topics in finance, including
delegated money management; the pricing of financial assets; valuing a firm’s growth
potential; the capital structure decision; and the interaction between labor markets and
financial markets.
Professor Berk has coauthored two finance textbooks: Corporate Finance and Fundamentals in
Finance. The first edition of Corporate Finance is the most successful first edition
textbook ever published in financial economics, and is a standard text in almost all top
MBA programs around the world.
Professor Berk’s research is internationally recognized and has won numerous awards,
including the TIAA-CREF Paul A. Samuelson Award, the Smith Breeden Prize, Best Paper of
the Year in the Review of Financial Studies, and the FAME Research Prize. His article, “A
Critique of Size-Related Anomalies,” was selected as one of the two best papers ever
published in the Review of Financial Studies, and was also honored as one of the 100
seminal papers published by Oxford University Press. In recognition of his influence on
the practice of finance, he has received the Graham and Dodd Award of Excellence, the
Roger F. Murray Prize, and the Bernstein Fabozzi/Jacobs Levy Award.
Professor Berk received his PhD in finance from Yale University. Before joining Stanford
he was the Sylvan Coleman Professor of Finance at Haas School of Business at the
University of California, Berkeley. He was born and grew up in Johannesburg, South
Africa.
**Please REGISTER**:
Mail: gutmann-center@wu.ac.at<mailto:gutmann-center@wu.ac.at>
Phone: +43-1-31336-5238
CONTACT AND FURTHER INFORMATION:
WU Gutmann Center for Portfolio Management WU (Wirtschaftsuniversität Wien)
Department of Finance, Accounting and Statistics
Sabina Krickl
www.gutmann-center.at<http://www.gutmann-center.at>
Please contact gutmann-center@wu.ac.at<mailto:gutmann-center@wu.ac.at> if you do not
wish to receive any further invitations from us!
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