Dept. III: Institutional Money Magazine reports on one of our Working Papers

An article about our research has been published in Institutional Money Magazine. The specialist magazine for institutional investors takes up our paper “Once a Trader, Always a Trader: The Role of Traders in Fund Management”, in which we examine the role of traders in investment management. Together with Gjergji Cici from the University of Kansas, Prof. Dr. Philipp Schuster and Franziska Weishaupt from the University of Stuttgart show that former traders as fund managers are able to identify and exploit short-term trading opportunities and achieve lower transaction costs. These skills are particularly valuable in times of market stress. In addition, trader-managers exhibit sophisticated risk management behavior that does not conform to the cliché of excessive risk-taking. Experience from trading is therefore in demand and an advantage in fund management.