This event is subject to the point system.
*To attend the full seminar (from its beginning till the end).
How do active managers engage with their portfolio firms? And what role does monitoring and engagement play in their trading decisions? We use proprietary data from one of the world’s largest active asset managers with a commitment to stewardship to answer these questions. Our sample, based on nine years of data, provides a detailed picture of how fund managers’ decisions are influenced by monitoring target firms, especially through interaction at private meetings, that we can observe. We find that engagement is correlated with trading decisions, where dissatisfaction with portfolio firms leads to sales of stakes. Dissatisfaction is manifested in voting decisions against management of target firms, internal sector analyst recommendations, and exit. Monitoring and engagement by the active asset manager appears to produce private information, which in turn contributes to alpha. Our results provide strong support for voice influencing exit.
GSM and ECN student / faculty member
Faculty of Law and Faculty of Economics East Bldg 8F
Associate Professor Asli M. Colpan
Registration is not required.