Laurence B. Siegel won the inaugural EDHEC Robeco Journal of Portfolio Management Award for his paper, “Alternatives and Liquidity: Will Spending and Capital Calls Eat Your 'Modern' Portfolio?”
The paper was determined to have the most relevance for institutional investors among papers published in the journal in 2008.
In the paper, Mr. Siegel looked at how investors with high allocations to alternatives incur liquidity risk, which can be attenuated by spreading out private equity and hedge fund investments over time so partial liquidity is available on a regular basis. Mr. Siegel, who announced in June he will retire from his position of director of research, investment division, at the $9.3 billion Ford Foundation, New York, continues as research director at the CFA Institute, Charlottesville, Va.
In choosing a winner, EDHEC and Journal of Portfolio Management officials selected a shortlist of papers, from which three European pension fund CIOs made the final selection. — Drew Carter