Andrew Lo
Andrew Lo
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Full Name and Common Aliases
Andrew W. Lo is a renowned American economist, investor, and author who is commonly known as the "Father of Behavioral Finance."
Birth and Death Dates
Born on October 13, 1960, in Taiwan, there is no available information about his death date.
Nationality and Profession(s)
Nationality: American
Profession(s): Economist, Investor, Author, Professor
Andrew Lo is a prominent figure in the fields of finance, economics, and behavioral science. He has held various positions throughout his career, including:
Co-founder and Chairman of AlphaSimplex Group
Charles E. and Susan T. Harris Professor at MIT Sloan School of Management
Director of the MIT Laboratory for Financial EngineeringEarly Life and Background
Lo was born in Taiwan to a family of Chinese immigrants. He moved to the United States with his family at a young age and grew up in New Jersey. Lo developed an interest in economics and finance at an early age, which led him to pursue a degree in mathematics and economics from Harvard University.
Major Accomplishments
Lo's work has had a significant impact on the field of finance. Some of his notable achievements include:
Developing the concept of "behavioral finance," which examines how psychological biases influence investment decisions
Creating the "Risk Parity" approach, a method for managing risk that takes into account multiple asset classes
Writing extensively on topics such as financial engineering, hedge funds, and alternative investments
Lo has also received numerous awards and honors for his contributions to the field of finance. In 2010, he was awarded the inaugural _Financial Engineer_ Award by the International Association of Financial Engineers.
Notable Works or Actions
Lo has written several books on finance and economics, including:
Hedge Funds: An Analytic Perspective (1999)
The Evolution of Risk Management Paradigms (2003)
* Introduction to High-Frequency Trading and Microstructure (2010)
He is also a frequent contributor to leading financial publications, such as the _Financial Times_ and _Forbes_.
Impact and Legacy
Lo's work has had a significant impact on the field of finance. His research on behavioral finance has helped to shape our understanding of how investors make decisions, while his development of risk parity has provided a new approach to managing investment risk.
As a professor at MIT, Lo has mentored numerous students who have gone on to become leaders in the financial industry. He continues to be an influential voice in the world of finance, with his work appearing regularly in top-tier publications and academic journals.
Why They Are Widely Quoted or Remembered
Andrew Lo is widely quoted and remembered for his insightful commentary on the intersection of finance and behavioral science. His ability to distill complex concepts into accessible language has made him a trusted source for investors, policymakers, and academics alike.
Lo's commitment to advancing our understanding of financial markets and behavior has earned him a reputation as one of the most respected voices in the field. As a pioneer in behavioral finance and risk parity, he continues to shape the conversation around investment decision-making and risk management.
Quotes by Andrew Lo
My mother died of lung cancer last year. I felt helpless. As an economist, I thought, 'What can I do?'
The risks facing hedge funds are non-linear and more complex than those facing traditional asset classessuch risks are currently not widely appreciated or well-understood.
If you rank the top 50 one-day moves in the S&P 500, a fair number of those happened within the last five or 10 years. That tells you that we're in a different, riskier market now.
The short answer is, I don't know. Nobody knows. The reason for that is, we don't have enough data on the particular exposures we need to measure to answer that question.
Credit derivatives and hedge funds have grown fairly spectacularly over the last five years.
At this point, there isn't an obvious place to park money, ... A number of strategies that produced good returns in the past are no longer profitable. A lot of the smart money is sitting on the sidelines right now just waiting for the direction to change.
Finance and economic research has hit a wall. We can't answer any more questions by running another regression analysis. Now, we need to get inside the brain to understand why people make decisions.
The risks facing hedge funds are non-linear and more complex than those facing traditional asset classessuch risks are currently not widely appreciated or well-understood
Economists suffer from a deep psychological disorder that I call 'physics envy'. We wish that 99 percent of economic behavior could be captured by three simple laws of nature. In fact, economists have 99 laws that capture 3 percent of behavior. Economics is a uniquely human endeavor ...