skip to content

Cambridge Endowment for Research in Finance (CERF)

 

Pedro Saffi

We show that mutual funds make portfolio allocation decisions conditional on information acquired from participating in the equity lending market. Using unique data from German mutual, we show that funds that lend shares to short sellers are more likely to exit positions relative both to stocks that they do not lend and to funds that do not lend. Lenders avoid losses by better timing the closure of long positions than for stocks they do not lend. Finally, we show information acquisition in the lending market allows lenders to front-run public disclosure of large short positions.

End of Award Report - April 2021

 

Latest news

PhD advisor and co-author of CERF post-doc Xinyu Hou wins Nobel Prize in Economics

11 October 2022

Philip H Dybvig from Washington University is (joint with Bernanke and Diamond) a recipient of this year’s Nobel Memorial Prize in Economic Sciences for his research on banks and financial crises. Prof. Dybvig is the former PhD advisor of Dr Xinyu Hou who is currently a post-doctoral researcher at the Cambridge Endowment...