Professor’s Research on Institutional Investors Cited in The Canadian Investment Review
Oct. 29, 2020
Illiquid funds research conducted by Eller College of Management Assistant Professor of Finance Andrea Rossi was recently referenced by Canadian Investment Review. The October 27 article discusses how institutional investors can navigate the risks that come with increasing their investment allocations.
The column cites the paper “Unsmoothing Returns of Illiquid Funds” by Rossi and co-authors Spencer Couts of the University of Southern California and Andrei S. Gonçalves of the University of North Carolina. Their research introduces a technique that allows investors not only to improve performance on real estate and hedge funds but also avoid other risks and “noise” that are common in investing.
“By pulling together all the data for hundreds of funds that have similar exposure, we’re able to further eliminate noise” explains Rossi in the article. “Some of that estimation error makes it difficult to recover the true correlation between the returns of these funds and the returns of indexes that proxy for those risks.”
Andrea Rossi joined the Eller College of Management in 2018 after earning his PhD in Finance from Ohio State University. A Chartered Financial Analyst, his areas of expertise include private equity, asset management, investor behavior and corporate insiders. He has also worked as a financial analyst for PFC and as a junior project manager for BNP Paribas.