The faculty at Simon Business School reached new heights in 2019, with a significant number of awards, recognitions, and publications, and it appears that momentum is building. We are so pleased to open 2020 with the announcement that Robert Novy-Marx, Lori and Alan S. Zekelman Distinguished Professor of Finance, has won the Financial Analysts Journal’s scroll award for 2019 for his article, Comparing Cost-Mitigation Techniques, written with his associate, Mihail Velikov.
The Financial Analysts Journal aims to be the leading practitioner journal in the investment management community by advancing the knowledge and understanding of the practice of investment management. As part of this mission, and to honor Benjamin Graham and David Dodd, the Graham and Dodd Awards were created in 1960 to recognize excellence in research and financial writing in the Financial Analysts Journal.
The Graham and Dodd award this year went to “What is Quality” by Hsu et al. Very prestigious, the scroll award is the runner up to the Graham and Dodd award, and is selected after a two phase process that starts with a voting phase by members of the Journal’s advisory council and editorial board. The second is a meeting of the Graham and Dodd Awards Committee to consider the shortlist produced by the first phase. The Committee (six members selected from the CFA Institute Board, Leadership Team and CFA Society Leadership as well as the Journal Editors) unanimously selected “What is Quality” and Professor Novy-Marx’s article as the two most advancing the mission of the Financial Analysts Journal, namely to contribute to the practice of investment management through scientific research.
The award-winning article compares the efficacy of three common transaction-cost-mitigation techniques: limiting a strategy to cheap-to-trade securities, rebalancing a strategy less frequently, and “banding,” which imposes a higher hurdle for actively trading into a position than for maintaining an established position.
Professor Novy-Marx earned the Fama/DFA Prize for the best capital markets/asset pricing paper in the Journal of Financial Economics (2012 and 2013), the Smith-Breeden Prize for the best capital markets paper in the Journal of Finance (2011), the Spängler IQAM Prize for the best paper in the Review of Finance (2011), and the Mill's Prize for the best paper in Real Estate Economics. Novy-Marx is also a former professional triathlete, a member of the National Bureau of Economic Research and taught at the Booth School of Business before coming to the Simon School.
Congratulations to Professor Novy-Marx. We are eager to see the accomplishments in store for him, and all of our Simon faculty, in the year to come.