Ananth Madhavan, managing director at BlackRock Inc., San Francisco, was named winner of the annual CFA Institute's Graham and Dodd Award for his Financial Analysts Journal article, “Exchange-Traded Funds, Market Structure and the Flash Crash.”
The award honors excellence in research and financial writing for the most outstanding article appearing in the Financial Analysts Journal in 2012.
Mr. Madhavan's article, published in the July/August 2012 issue of the FAJ, “analyzes the relationship between market structure and the recent flash crash,” finding “the proliferation of trading venues has resulted in a market that is more fragmented than ever and explores new market structure reforms” to help mitigate such market disruption, according to a CFA Institute statement.
Graham and Dodd Scroll Awards, recognizing other outstanding FAJ articles, were awarded to:
- Robert D. Arnott, CEO and chairman, and Denis B. Chaves, senior researcher, both at Research Affiliates LLC, Newport Beach, Calif., for their article “Demographic Changes, Financial Markets and the Economy,” in the January/February 2012 FAJ, which “found a strong and intuitive link between demographic transitions and both GDP growth and capital market returns,” the statement said;
- Philippe Jorion, managing director of Pacific Alternative Asset Management Co. and Chancellor's Professor of Finance at the Paul Merage School of Business, University of California, Irvine, and Rajesh K. Aggarwal, the U.S. Bancorp Professor in Financial Markets and Institutions at Carlson School of Management, University of Minnesota, Minneapolis, for “Is There a Cost to Transparency?” in the March/April 2012 FAJ, examining “whether a willingness to offer transparency to investors is beneficial or costly in terms of hedge fund returns”;
- Thomas M. Idzorek, president and global chief investment officer, and James X. Xiong, senior research consultant, both at Morningstar Inc.'s investment management division, Chicago, and Roger G. Ibbotson, chairman and chief investment officer, Zebra Capital Management LLC, Milford, Conn., and professor in the practice of finance, Yale School of Management, New Haven, Conn., for “The Liquidity Style of Mutual Funds,” in the November/December 2012 FAJ, examining whether the style of investing in less liquid stocks has led to excess returns relative to size and value at the mutual fund level as it has been documented at the security level; and
- Robert M. Anderson, professor of economics, Lisa R. Goldberg, professor of statistics, and Stephen W. Bianchi, Ph.D. candidate in economics, all at the University of California, Berkeley, for “Will My Risk Parity Strategy Outperform?” in the November/December 2012 FAJ, gauging the return-generating potential of value-weighted, 60/40 fixed mix, and unlevered and levered risk-parity investment strategies.
Eugene F. Fama was named winner of the Best Perspectives Award, recognizing the timeliest and most thought-provoking opinion article for “An Experienced View on Markets and Investing,” in the November/December 2012 FAJ. Mr. Fama is director of Dimensional Fund Advisors LP and director of research and member of its investment strategy committee, and the Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago Booth School of Business.
William Reichenstein, Stephen M. Horan, and William W. Jennings were named winners of the Readers' Choice Award for “Two Key Concepts for Wealth Management and Beyond” in the January/February 2012 FAJ. Mr. Reichenstein is principal at Retiree Inc., Leawood, Kan., and the Pat and Thomas R. Powers Chair in Investment Management at Baylor University, Waco, Texas; Mr. Horan is head of university relations and private wealth at CFA Institute; and Mr. Jennings, professor of finance and investments at the U.S. Air Force Academy, Colorado Springs, Colo.
The FAJ advisory council and editorial board select the winners of the awards, except the readers' choice award, which is chosen by voting open to the entire readership. The awards, which carry no prize money, were created in 1960 to honor the enduring contributions of Benjamin Graham and David L. Dodd, legendary investors, to the investment analysis field.
A global association of 114,500 members, the Charlottesville, Va.-based CFA Institute's focus includes setting standards for the investment management profession.