Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7360526 | Journal of Empirical Finance | 2018 | 47 Pages |
Abstract
We use industry data to investigate how the crowding of an equity space develops due to the portfolio construction process in the equity asset management sector. We find crowding can be reduced by slightly altering the risk management process. We also find that crowding in the financial system could be lower if the distribution of risk model usage amongst portfolio managers was more diversified.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Salvatore Bruno, Ludwig B. Chincarini, Frank Ohara,