Clifford S. Asness, Roni Israelov and John M. Liew, all from AQR Capital Management, were named co-winners of the annual CFA Institute's Graham and Dodd Award for their article on the benefits of global equity diversification.
The award recognizes excellence in research and financial writing in articles in 2011 issues of the Financial Analysts Journal, a publication of the CFA Institute. Their article, “International Diversification Works (Eventually),” was published in the May/June issue.
“The article demonstrates that, although in the short run global equity markets may occasionally experience downturns at the same time, in the long term a truly diversified global portfolio provides substantial benefits to investors,” Rodney N. Sullivan, FAJ editor, said in an e-mail.
Mr. Asness is founding and managing principal at AQR; Mr. Israelov, vice president; and Mr. Liew, founding principal.
Also receiving a Graham and Dodd Scroll Award, recognizing other outstanding articles, was given to Research Affiliates Chief Investment Officer Jason Hsu, Vice President Vitali Kalesnik and research associate Tzee-man Chow; and Bryce Little, graduate student at Texas A&M University; for their September/October article, “A Survey of Alternative Equity Index Strategies.”
The four also were named winners of the Graham and Dodd Readers' Choice Award, selected by a vote of FAJ readers, for the article.
Other Scroll Award winners were:
- Malcolm Baker, professor of finance at Harvard Business School, research associate at the National Bureau of Economic Research, and senior consultant at Acadian Asset Management; Brendan Bradley, director of managed volatility strategies at Acadian; and Jeffrey Wurgler, professor of finance at New York University Stern School of Business, research associate at the NBER and senior consultant at Acadian; for their January/February article, “Benchmarks as Limits to Arbitrage: Understanding the Low-Volatility Anomaly”;
- Roger G. Ibbotson, professor in practice of finance, Yale School of Management and chairman and CIO of Zebra Capital Management; Peng Chen, president of Morningstar Global Investment Management; and Kevin X. Zhu, assistant professor, Hong Kong Polytechnic University, for their January/February article, “The ABCs of Hedge Funds: Alphas, Betas and Costs”; and
- Robert C. Jones, chairman of Arwen Advisors, and Russ Wermers, associate professor of finance, Robert H. Smith School of Business, University of Maryland, for their November/December article, “Active Management in Mostly Efficient Markets.”
Also, Richard W. Roll, the Joel Fried Chair in Applied Finance at UCLA Anderson school and principal of consultant Compensation Valuation, was named winner of the Graham and Dodd Best Perspectives Award, recognizing timely, thought-provoking opinion, for his March/April article, “The Possible Misdiagnosis of a Crisis.”
The FAJ Advisory Council and Editorial Board selected the winners. The awards have no prize money.
The award, created in 1960, honors “the enduring contributions of Benjamin Graham and David L. Dodd, legendary investors, to the investment analysis field,” according to another CFA Institute statement.
Links to the winning articles are available on the CFAI's website.