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Narayan Naik

Professor of Finance; Joint Chair, Finance Faculty


BTech (IIT Bombay), MBA (IIM Ahmedabad), PhD (Duke)

Professor Narayan Naik is recognised as one of the leading experts on hedge fund investing. Over the last decade he has authored a significant body of work in hedge funds benchmarking, performance evaluation of long-only managers, tail-risk hedging, life settlements-longevity risk and market microstructure.  


His work has appeared in the top finance journals, leading practitioner journals and financial press. Professor Naik’s teaching includes the following subjects: Strategic Investment Management, Equity Investment Management and Hedge Funds. 


Since joining London Business School (LBS) in 1991, Professor Naik has played a key role in the development of the finance group at LBS, most notably in the role of Director of the PhD programme in Finance, Director of the School’s Investment Management Programme and Director of the Hedge Fund Research Centre. Currently, Professor Naik is one of the Academic Directors of the AQR Asset Management Institute at LBS.  


Professor Naik has appeared many times on CNN, CNBC, Bloomberg, the BBC, ITV and other news channels as an expert finance academic. He has consulted widely during his career for the World Bank, sovereign wealth funds in the Middle East, and private corporations in the UK, USA, Middle East and Far East.  


He has also designed, and taught tailor-made courses in corporate finance, investment management and hedge funds for investment banks and financial institutions.  


Prior to studying for his PhD, he was working as a consultant for the World Bank and an executive for Special Steels and the Taj Group of Hotels.

2012

Funds of hedge funds: Performance, risk and capital formation 2005 to 2010

Edelman D; Fung W; Hsieh D; Naik N

Financial Markets and Portfolio Management 2012 Vol 26:1 p 87-108

2011

Do hedge funds manage their reported returns?

Naik N Y; Agarwal V

Review of Financial Studies 2011 October Vol 24:10 p 3281-3320

Hedge funds, managerial skill and macroeconomic variables

Naik N Y; Avramov D; Kosowski R; Teo M

Journal of Financial Economics 2011 March Vol 99:3 p 672-692

Herding and delegated portfolio management: Impact of relative performance on asset allocation

Naik N Y; Maug E

Quarterly Journal of Finance 2011 Vol 1:2 p 265-292

Risk and return in convertible arbitrage: Evidence from the convertible bond market

Naik N Y; Agarwal V; Fung W; Loon Y C

Journal of Empirical Finance 2011 March Vol 18:2 p 175-194

2009

Effect of Managerial Incentives and Discretion on Performance of Hedge Funds

Agrawal V; Daniel N; Naik N

Journal of Finance 2009 Vol 64:5 p 2221-2256

Hedge funds for retail investors? An examination of hedged mutual funds

Agarwal V; Boyson N M; Naik N Y

Journal of Financial and Quantitative Analysis 2009 Vol 44:2 p 273-305

2008

Hedge funds: Performance, risk and capital formation

Naik N Y; Fung D; Hsieh D; Ramadorai T

Journal of Finance 2008 August Vol 63:4 p 1777-1803

2007

Capacity constraints and hedge fund strategy returns

Naik N Y; Ramadorai T; Stromqvist M

European Financial Management 2007 Vol 13:2 p 239-256

Demystifying hedge funds

Naik N Y; Tapley M

Business Strategy Review 2007 June Vol 18:2 p 68-72

Do hedge funds deliver alpha? A Baysian and bootstrap analysis

Naik N Y; Kosowski R; Teo M

Journal of Financial Economics 2007 Vol 84:1 p 229-264

2005

Hedge funds

Naik N Y; Agarwal V

Foundations and Trends in Finance 2005 December Vol 1:2 p 103-170

Strategic trading behaviour and price distortion in a manipulated market: anatomy of a squeeze

Merrick J; Naik N Y; Yadav P

Journal of Financial Economics 2005 Jul Vol 77:1 p 171-218

2004

Risks and portfolio decisions involving hedge funds

Naik N Y; Agarwal V

Review of Financial Studies 2004 Spring Vol 17:1 p 63-98

2003

Do dealer firms make a market on a stock-by-stock basis or a portfolio basis?

Naik N Y; Yadav P

Journal of Financial Economics 2003 Vol 69:2 p 18873-1904

Risk management with derivatives by dealers and market quality in government bond market

Naik N Y; Yadev P

Journal of Finance 2003 Vol 58:2 p 325-353

2002

Hedge Funds: Charackteristika und Risiken

Naik N Y; Agarwal V

Absolut Report: Die erste Publickation fur Alternative Investment in Deutschland 2002 Feb Vol 2 p 8-14

Introduction to hedge funds

Naik N Y; Agarwal V

Gestion Alternative: Recueil d'Opinions (AFG-ASFFI) 2002 Juillet

2001

Creative funds that have come into their own

Agarwal V; Naik N Y

Financial Times 2001 Jun 11

2000

Generalized style analysis of hedge funds

Agarwal V; Naik N Y

Journal of Asset Management 2000 Jul Vol 1:1 p 93-109

Multi-period performance persistence analysis of hedge funds

Naik N Y; Agarwal V

Journal of Financial and Quantitative Analysis 2000 Vol 35:3 p 327-342

On taking the alternative route: risks, rewards and performance persistance of hedge funds

Agarwal V; Naik N Y

Journal of Alternative Investments 2000 Vol 2:4 p 6-23

1999

Disclosure regulation in markets with negotiated trades

Naik N Y; Neuberger A J; Viswanathan S

Review of Financial Studies 1999 Vol 12:4 p 873-900

Preferencing, internalization and best execution: evidence from the London Stock Exchange

Hansch O; Naik N Y; Viswanathan S

Journal of Finance 1999 Vol 54:5 p 1799-1828

1998

Bid-ask bias in cumulated stock returns

Datar V; Naik N Y

European Financial Management 1998 Vol 4:1 p 79-90

Do inventories matter in dealership markets?: evidence from the London Stock Exchange

Hansch O; Naik N Y; Viswanathan S

Journal of Finance 1998 Vol 53:5 p 1623-1656

Investors' choice

Naik N Y; Yadav P K

Financial News Briefing Notes 1998 Oct 5

Liquidity and stock returns: an alternative test

Datar V; Naik N Y; Radcliffe R

Journal of Financial Markets 1998 Vol 1:2 p 203-219

1997

Economic role of financial markets

Naik N Y

Mastering Management, Financial Times 1997

Multi-period information markets

Naik N Y

Journal of Economic Dynamics and Control 1997 Vol 20 p 1199-1277

On aggregation of information in competitive markets: the dynamic case

Naik N Y

Journal of Economic Dynamics and Control 1997 Vol 21 p 1229-1258

Role of financial markets

Naik N Y

in Bickerstaffe G ed., Mastering management, p 64-66, Financial Times/Prentice Hall, 1997

Spinoffs and information

Naik N Y; Habib M A; Johnsen D B

Journal of Financial Intermediation 1997 Vol 6 p 153-176

1996

Habit formation and intertemporal substitution in individual food consumption

Naik N Y; Moore M J

Review of Economics and Statistics 1996 May Vol 78:2 p 321-328

Models of information aggregration in financial markets

Habib M A; Naik N Y

Applied Mathematical Finance 1996 Vol 3 p 159-166

2014

Alpha Decay

Lines A; Di Mascio R; Naik N

IFA Working Paper

Growing the Asset Management Franchise: Evidence from Hedge Fund Firms

Fung W; Hsieh D; Naik N; Teo M

IFA Working Paper

Long Horizon Volatility Forecasting for Equities & Bonds

Cardinale M; Naik N; Sen I

IFA Working Paper

2008

Do hedge funds manage their reported returns?

Agarwal V; Daniel N; and Naik N

BNP Paribas Hedge Fund Centre Working Paper Series

Investing in hedge funds when returns are predictable

Avramov D; Kosowski R; Naik N Y; Teo M

BNP Paribas Hedge Fund Centre Working Paper Series

2007

Hedge funds for retail investors? An examination of hedged mutual funds

Agarwal V; Boyson N; Naik N

BNP Paribas Hedge Fund Centre Working Paper Series

Hedge funds: performance, risk and capital formation

Fung W; Naik N Y; et al.

BNP Paribas Hedge Fund Centre Working Paper Series

Liquidity provision in the convertible bond market: analysis of convertible arbitrage hedge funds

Agarwal V; Naik N Y; et al.

BNP Paribas Hedge Fund Centre Working Paper Series

Role of managerial incentives and discretion in hedge fund performance

Agarwal v; Daniel N D; Naik N Y

BNP Paribas Hedge Fund Centre Working Paper Series

Why is Santa so kind to hedge funds? The December return puzzle!

Agarwal V; Daniel N; Naik N

BNP Paribas Hedge Fund Centre Working Paper Series

2006

Capacity Constraints and Hedge Fund Strategy Returns

Naik N Y; Ramadorai T; Stromqvist M

BNP Paribas Hedge Fund Centre Working Paper Series

Do hedge funds deliver alpha?: a Bayesian and bootstrap analysis

Kosowski R; Naik N Y; Teo M

BNP Paribas Hedge Fund Centre Working Paper Series

Hedge Funds for Retail Investors? An Examination of Hedged Mutual Funds

Agarwal V; Boyson N M; Naik N Y

BNP Paribas Hedge Fund Centre Working Paper Series

Hedge funds: performance, risk and capital formation

Fung W; Naik N Y; et al.

BNP Paribas Hedge Fund Centre Working Paper Series

Risk and Return in Convertible Arbitrage: Evidence from the Convertible Bond Market

Agarwal V; Naik N Y; et al.

BNP Paribas Hedge Fund Centre Working Paper Series

Role of managerial incentives and discretion in hedge fund performance

Agarwal V; Daniel N D; Naik N Y

BNP Paribas Hedge Fund Centre Working Paper Series

2004

Flows and performance in the hedge fund industry

Agarwal V; Daniel N; Naik N Y

Centre for Hedge Fund Research and Education Working Paper

Flows, performance, and managerial incentives in hedge funds

Agarwal V; Daniel N D; Naik N Y

Centre for Hedge Fund Research and Education Working Paper

2002

Risks and portfolio decisions involving hedge funds

Agarwal V; Naik N Y

IFA Working Paper

Risks and portfolio decisions involving hedge funds

Agarwal C; Naik N Y

Centre for Hedge Fund Research and Education Working Paper

Strategic trading behavior and price distortion in a manipulated market: an anatomy of a squeeze

Merrik Jr J J; Naik N Y; Yadav P K

Centre for Hedge Fund Research and Education Working Paper

Multi-period performance persistence analysis of hedge funds

Agarwal V; Naik N Y

Centre for Hedge Fund Research and Education Working Paper

On taking the 'alternative' route: risks, rewards, style and performance persistence analysis of hedge funds

Agarwal V; Naik N Y

Centre for Hedge Fund Research and Education Working Paper

Performance evaluation of hedge funds with option-based and buy-and-hold strategies

Agarwal V; Naik N Y

Centre for Hedge Fund Research and Education Working Paper

Multi-period performance persistence analysis of hedge funds

Agarwal V; Naik N Y

IFA Working Paper

1997

Liquidity and stock returns: an alternative test

Datar V; Naik N Y; Radcliffe R

IFA Working Paper

Electives


  • Elective Course in Equity Investment Management

  • Elective Course in Banks and Financial Institutions

  • Elective Course in Hedge Funds

  • Elective Course in Wealth Management and Islamic Finance 


Executive Education  


  • Investment Management Programme

  • Strategic Investment Management 


MBA

Research Awards


  • The Inquire UK Award for the Best Paper presented at Inquire Europe conferences, 2008.

  • Commonfund Institute’s Best Paper Award, European Finance Association, Slovania, 2007.

  • The Man Investments Award for the Best Paper on Hedge Funds, European Finance Association, Zurich, 2006.

  • The Fauchier Partners’ Award for the Best Paper on Hedge Funds received at the European Finance Association Meetings in Glasgow, 2003.

  • The New York Stock Exchange Award for the Best Paper on Market Microstructure received at the European Finance Association Meetings in Glasgow, 2003.

  • The Inquire Europe Award for the Best Paper presented at Inquire Europe conferences, 2001.

  • The Robert J. Schwartz Award for Best Paper on Hedging with Derivatives, 2000.

  • The New York Stock Exchange Award for the Best Paper on Equity Trading received at the Western Finance Association Meetings in San Diego, 1997.

Research Interests


  • life settlements and longevity risk
  • tail-risk hedging
  • performance measurement
  • hedge funds
  • portfolio selection
  • capital markets.