Lubos Pastor, a professor of finance at the University of Chicago Booth School of Business, received the first-ever Whitebox Advisors Prize for the best financial research published in 2011. He was honored for his paper “Are Stocks Really Less Volatile in the Long Run?” written with Robert Stambaugh from Wharton and published in the Journal of Finance.
Nearly 500 research papers were considered for the award, which was presented on June 19, 2012, in New York City. Professors Pastor and Stambaugh will share the $25,000 prize.
“The belief that stock prices are more predictable over the long run than over the near term is a bedrock assumption for much of the investment world,” said Andrew Redleaf, founder and chief executive of Whitebox, an investment advisory firm in Minneapolis. “After devoting years of research to the subject, Professors Pastor and Stambaugh now make a powerful argument that this bedrock assumption may not hold. Their paper serves as a bold, bright neon sign proclaiming, ‘Investors beware!’”
“Contrary to conventional wisdom, stocks do not appear safer to investors with longer investment horizons,” said Pastor, the Charles P. McQuaid Professor of Finance at Chicago Booth, where he teaches M.B.A. courses in portfolio management. “Once you take into account all the uncertainty that investors face, stocks actually appear more volatile to longer-horizon investors on a per-year basis.”
In addition to his position at Booth, Pastor is a Research Associate at the National Bureau of Economic Research, a Research Fellow at the Centre for Economic Policy Research and a director of the Western Finance Association.
Pastor’s research also has appeared in many other scholarly journals, including the American Economic Review, the Journal of Political Economy, the Review of Financial Studies and the Journal of Financial Economics.
Pastor joined the Booth faculty in 1999 after receiving his Ph.D. in finance from Wharton.
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