Do Institutional Investors Have an Ace Up Their Sleeves? Evidence from Confidential Filings of Portfolio Holdings

2009 ◽  
Author(s):  
Vikas Agarwal ◽  
Wei Jiang ◽  
Yuehua Tang ◽  
Baozhong Yang
Keyword(s):  
Institutional Investors ◽  
Portfolio Holdings

DO INSTITUTIONAL INVESTORS CARE ABOUT THE AMBIGUITY OF THEIR ASSETS? EVIDENCE FROM PORTFOLIO HOLDINGS IN ALTERNATIVE INVESTMENTS

2011 ◽  
Vol 14 (04) ◽  
pp. 465-484 ◽  
Author(s):  
CHRISTIAN KOZIOL ◽  
JULIANE PROELSS ◽  
DENIS SCHWEIZER
Keyword(s):  
Institutional Investors ◽  
Private Equity ◽  
Hedge Fund ◽  
Expected Returns ◽  
Model Risk ◽  
Alternative Investments ◽  
Portfolio Holdings ◽  
Special Cases ◽  
Bond Portfolios ◽  
Asset Classes

In this paper, we analyze whether model risk/asset-specific ambiguity is an issue for institutional investors. For this purpose, we first show how model risk (which turns out to be equivalent to special cases of ambiguity) affects optimal portfolio allocation. Using average portfolio holdings for traditional and alternative asset classes of 119 institutional investors, we then calibrate our model to implicitly determine the ambiguity factors of different asset classes. We find that institutional investors are strongly ambiguity-averse, as documented by a Sharpe ratio that is only 60 percent that of an (unambiguous) efficient portfolio. In line with intuition, we document that equity and bond portfolios have a rather low ambiguity, while alternative investments such as real estate, private equity, and hedge fund investments exhibit a very high ambiguity. These results are robust with regard to the size of the expected returns supposed by the investors.

Institutional Ownership and CEO Equity Incentives

2016 ◽  
Vol 29 (3) ◽  
pp. 55-77 ◽  
Author(s):  
Brian Bratten ◽  
Yanfeng Xue
Keyword(s):  
Institutional Investors ◽  
Stock Options ◽  
Institutional Ownership ◽  
Top Executives ◽  
Portfolio Holdings ◽  
Equity Incentives ◽  
Contracting Process ◽  
New Evidence ◽  
Jel Classifications

ABSTRACT This study provides new evidence on the relation between institutional ownership and the equity incentives provided to CEOs by their portfolio holdings of stock and stock options. We show that when firms' CEOs have abnormally high equity incentives, higher institutional ownership is associated with a larger reduction in the incentives. Conversely, when firms' CEOs have abnormally low equity incentives, higher institutional ownership is associated with a larger increase in these incentives. To achieve this, we find that firms with higher institutional ownership that have abnormally high (low) incentives experience a greater reduction (increase) in CEO annual option grants and a substitution between CEO equity-based compensation and cash-based compensation. Our findings highlight the important role of institutional investors in enhancing efficiency in the top executives' compensation contracting process. JEL Classifications: G30; G34; J33; L25; M41.

Institutional Investors on the Securities Market

2003 ◽  
pp. 95-101
Author(s):  
O. Khmyz
Keyword(s):  
Financial Crisis ◽  
Capital Market ◽  
Hedge Funds ◽  
Institutional Investors ◽  
Securities Market ◽  
Main Role ◽  
Investment Funds ◽  
Investment Process ◽  
The Capital Market

Acording to the author's opinion, institutional investors (from many participants of the capital market) play the main role, especially investment funds. They supply to small-sized investors special investment services, which allow them to participate in the investment process. However excessive institutialization and increasing number of hedge-funds may lead to financial crisis.

Pricing models of shares of Russian companies and their practical application

2019 ◽  
pp. 48-76 ◽  
Author(s):  
Alexander E. Abramov ◽  
Alexander D. Radygin ◽  
Maria I. Chernova
Keyword(s):  
Stock Market ◽  
Institutional Investors ◽  
Factor Model ◽  
Investment Strategies ◽  
Pricing Models ◽  
Foreign Portfolio Investment ◽  
Market Portfolio ◽  
Stock Market Performance ◽  
Long Time ◽  
Russian Stock Market

The article analyzes the problems of applying stock pricing models in the Russian stock market. The novelty of the study lies in the peculiarities of the methodology used and the substantive conclusions on the specifics of the influence of fundamental factors on the pricing of shares of Russian companies. The study was conducted using its own 5-factor basic pricing model based on a sample of the most complete number of issues of shares of Russian issuers and a long time horizon, from 1997 to 2017. The market portfolio was the widest for a set of issuers. We consider the factor model as a kind of universal indicator of the efficiency of the stock market performance of its functions. The article confirms the significance of factors of a broad market portfolio, size, liquidity and, in part, momentum (inertia). However, starting from 2011, the significance of factors began to decrease as the qualitative characteristics of the stock market deteriorated due to the outflow of foreign portfolio investment, combined with the low level of development of domestic institutional investors. Also identified is the cyclical nature of the actions of company size and liquidity factors. Their ability to generate additional income on shares rises mainly at the stage of the fall of the stock market. The results of the study suggest that as domestic institutional investors develop on the Russian stock market, factor investment strategies can be used as a tool to increase the return on investor portfolios.

Institutional Investors and Home Biased REITs

2016 ◽  
Author(s):  
Gianluca Mattarocci ◽  
Lucia Gibilaro
Keyword(s):  
Institutional Investors

Clients for Alternative Assets: Institutional Investors

1998 ◽  
Vol 1998 (5) ◽  
pp. 15-21, 26-27
Author(s):  
Henry G. Robin
Keyword(s):  
Institutional Investors
Sign in / Sign up

Export Citation Format

Share Document