Paper by Juha Joenväärä & al. cited in institutionalinvestor.com.

The paper ”Text Sophistication and Sophisticated Investors” by Assistant Professor Juha Joenväärä & al. has been cited in Amy Whyte’s article “Good Writers Make Better Hedge Fund Managers” published in institutionalinvestor.com:

“How well hedge fund managers describe their strategies in writing may say a lot about their performance, according to a new paper from four academic researchers. A well-rounded vocabulary — defined in the paper as “lexical diversity” — could be an indication of better cognitive ability and trustworthiness, leading to higher returns, “superior” Sharpe ratios, lower volatility, and fewer regulatory and legal problems, according to Aalto University’s Juha Joenväärä, University of Oulu’s Jari Karppinen, Singapore Management University’s Melvyn Teo, and University at Buffalo’s Cristian Tiu.”

Read the whole article.

Department of Finance