For Professional Investment Fund Managers, “Going Long” is a Winning Strategy
Russ Wermers, Smith professor and director of Smith’s Center for Financial Policy, introduces the Holding Horizon (H-H) measure, linking mutual fund managers' long-term stock holdings to superior risk-adjusted returns. The research highlights that skilled long-horizon managers outperform, offering insights for individual investors and retirement plans.
Holding Horizon: A New Measure of Active Investment Management
This article introduces a new holding horizon measure of active management and examines its relation to future risk-adjusted fund performance (alpha). Our measure reveals a wide cross-sectional dispersion in mutual fund investment horizons, and shows that long-horizon funds exhibit positive future long-term alphas by holding stocks with superior long-term fundamentals. Further, stocks largely held by long-horizon funds outperform stocks largely held by short-horizon funds by more than 3% annually, adjusted for risk, over the following 5-year period.
21 Smith School Professors Named Among Top 2% Scholars Worldwide
The University of Maryland’s Robert H. Smith School of Business faculty shapes future leaders in classrooms and drives global impact through groundbreaking research. Recently, 21 professors were ranked among the top 2% most-cited scholars worldwide by Elsevier. Explore their influential contributions elevating knowledge and inspiring the next generation of business leaders.
Experiential Learning Thriving at Smith: OEL Annual Report
Please check out the 2023-24 Office of Experiential Learning Report.
Top Research Award to Russ Wermers’ Paper Exploring the Role of Economies-of-Scale in Pension Management
A paper coauthored by Smith’s Russell Wermers is selected for the top prize in the International Centre for Pension Management (ICPM) 2023 Research Awards.
Several University of Maryland Researchers Meet at Smith to Talk Climate Finance
Supply chain risks from weather and climate, financing infrastructure risk reduction, and how measurement affects management when it comes to climate reporting were among the topics discussed at the Smith School on October 27 and 28, 2022. Roughly 30 participants, including University of Maryland professors, students, and representatives from financial institutions like the World Bank, T. Rowe Price, and PricewaterhouseCoopers were in attendance.
A Climate Change Call to Arms for Risk Modelers
Hurricane Ian is now a tropical storm, but estimates for the storm’s Florida landfall included a million-plus homes at risk for damage, with overall damages and losses expected to top $67 billion, according to Bloomberg.
Smith, UMD Experts to Discuss New Approach to Quantifying Financial Impacts of Climate Change
Experts from the University of Maryland and the investment management firm Conning will discuss a new approach to modeling climate risk to financial markets, in a free webinar at 9 a.m. Thursday, Sept. 22, 2022, hosted by the Center for Financial Policy (CFP) at UMD’s Robert H. Smith School of Business.
Climate Finance Risk Management Virtual Bootcamp Dovetails with SEC Proposed Disclosure Rules
The Securities and Exchange Commission’s recently proposed updated rules for public companies to report the climate-related impact of their businesses to the federal government and their shareholders. While the commission collects public comments on the proposal up to June 17, the University of Maryland has crafted a Climate Finance and Risk Management Bootcamp (June 23 and 30) geared to mid-career and senior professionals across industries, who increasingly weigh climate-change factors into business decisions and financial disclosures.
Wermers Becomes First Paul J. Cinquegrana Chair in Finance
The University of Maryland’s Robert H. Smith School of Business has named Russ Wermers as the Paul J. Cinquegrana ’63 Endowed Chair in Finance. Named for the late Paul J. Cinquegrana ’63, the newly created endowed professorship was established by a gift bequeathed to Maryland Smith by his late wife, Betty Cinquegrana.