NEW HAVEN, Conn. — Industry insiders are in on a well-kept secret: Yale University is a hotbed of hedge fund research.
That's because of the efforts during the past decade of a self-named "missionary for hedge funds," William N. Goetzmann, the Edwin J. Beinecke Professor of Finance and Management and director of the International Center for Finance at the Yale School of Management. He also is a power behind the center's Hedge Fund Research Initiative.
"Starting back in the mid-'90s, members of our faculty became interested in this unusual new form of investment — hedge funds — and wanted to understand them better. We started doing research on them to test asset pricing theory and to build models to show how hedge funds fit in," said Mr. Goetzmann.
The idea from the beginning has been to pair Yale faculty with other academics and industry practitioners to conduct cutting-edge research on hedge fund management. Seven Yale faculty members, including Mr. Goetzmann, Roger G. Ibbotson, Jonathan E. Ingersoll Jr. and Judith Chevalier, work with participating scholars from Massachusetts Institute of Technology, the Stern School of New York University, Boston College, the University of Illinois, Case Western Reserve University and others, as well as with hedge fund managers. In addition, David F. Swensen, chief investment officer, and Dean Takahashi, senior director-investments, of the Yale Investments Office, which manages the university's nearly $13 billion endowment, also are participating researchers at the HFRI.