Partnerships With a Purpose
The Gerstein Fisher Research Center is a collaboration between Gerstein Fisher and a select group of leading academics in the areas of finance, risk management and economics with the objective of applying theoretical research concepts to some of the real-world challenges facing individual investors.
Founded in 2009, the Gerstein Fisher Research Center’s mission is to investigate critical issues in finance and risk faced by individual investors through pioneering research that bridges the gap between academic theory and real-world financial practice.
Research is conducted jointly with our esteemed network of Academic Partners.
The Center’s work is guided by several key beliefs:
- The priority in finance should be the individual investor. Historically, financial and risk engineering research has been largely geared toward helping financial institutions become more stable and sustainable. The Gerstein Fisher Research Center prioritizes the welfare of individual investors and is committed to helping them navigate the complexity and obscurity of the current financial marketplace.
- Financial theories and models have limitations that make them incomplete. Successful investing is dependent on recognizing such gaps in financial models and then working to fill or otherwise manage them. For example, the Efficient Market Hypothesis does not account for the reality of certain investor behaviors that can impact the pricing of financial assets.
- Investment risk should be intentional, and investors should be compensated for bearing it. It is a “law of gravity” in investing that investors must incur risk to earn the potential for return. Yet too often, individual investors are led to accept sub-optimal risk/return tradeoffs—for example by taking unintended risk in the form of market cap, style or sector biases inherent in many actively managed investment strategies. The Center is on the leading edge of research related to how investors can incorporate intentional tilts toward well-documented risk factors that historically have rewarded investors in the form of enhanced returns relative to the average investor.