Arun Muralidhar and Sid Muralidhar were named co-recipients of the Investments & Wealth Institute Journal Research Award.
The father-and-son team won the 2021 award for their article, "Behavioral Finance in Investing: The Existence and Importance of 'Investment Tribes' and Risk-Preference Diversity," confirmed Devon Coquillard, spokeswoman at the Investments & Wealth Institute.
The article, which appeared in the Journal of Investment Consulting in 2020, explores how groups of individuals within investment management organizations may exhibit similar risk tendencies.
The paper utilizes a methodology that identifies risk biases and how they can influence and impact decision making.
"The framework presented can be helpful for investment firms and investment advisors, allowing them to become aware of potential biases. It also can be useful for asset owners that delegate decisions to third parties, because it allows them to understand how the investment firms they delegate to might behave when drawdowns result during market crises," an abstract of the article says.
Arun Muralidhar is chairman of AlphaEngine Global Investment Solutions and an adjunct professor at George Washington University, and Sid Muralidhar is CEO of Risktyle and an undergraduate at Virginia Tech University.
The Journal Research Award is given in honor of Edward D. Baker III, the first editor of the Journal of Investment Consulting.
The article is available on research hub SSRN's website.