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VERSION:2.0
PRODID:-//Memento EPFL//
BEGIN:VEVENT
SUMMARY:Hidden Alpha
DTSTART;VALUE=DATE:20211203
DTSTAMP:20260407T112016Z
UID:387fb83ec5b647f9cd19c9cb8ae83cdc9e811d1ad24726b0c5149691
CATEGORIES:Conferences - Seminars
DESCRIPTION:Lauren Cohen\, Harvard Business School\nUsing the setting of f
 inancial agents – in particular\, network ties amongst mutual fund manag
 ers and firm officers – we explore the importance of hidden network conn
 ections relative to all other network ties. We find that hidden network ti
 es are those associated with the largest and most significant abnormal ret
 urns accruing to the fund managers – on average 135 basis points per mon
 th (t=3.54) (over 16% alpha per year) across the universe of fund managers
  and public firms. This is relative to insignificant abnormal returns accr
 uing on average to all of their other trades\, including those to trades o
 f “visible” ties in the fund manager-firm officer network. The hidden 
 network premium does not appear to be driven by a familiarity or character
 istic selection story\, as fund managers seem to be correctly timing exact
 ly when to hold (and when not to hold) the firms to which they have hidden
  network ties. Further\, the more hidden the network tie is\, the more val
 uable the information that appears to be associated with the trading acros
 s it. This hidden network connection premium is not driven by any industry
 \, style\, time-period\, or firm-type\, remaining strong and significant t
 hrough the present day. More broadly\, the findings highlight the importan
 ce of missing or hidden nodes and connections when understanding the true 
 nature of shock propagation in complex network systems.
LOCATION:Zoom
STATUS:CONFIRMED
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