Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JII
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Index Investing
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Index Investing

The Journal of Index Investing

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JII
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
Article

Leadership Matters: Crafting a Smart Beta Portfolio with a Founder-CEO Twist

Joel M. Shulman
The Journal of Index Investing Winter 2017, 8 (3) 51-74; DOI: https://doi.org/10.3905/jii.2017.8.3.051
Joel M. Shulman
is a professor of entrepreneurship at Babson College and managing director at EntrepreneurShares, LLC, in Boston, MA
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Click to login and read the full article.

Don’t have access? Click here to request a demo 
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600

Abstract

Smart beta strategies have attracted considerable interest among institutional investors, and it appears this trend has not yet abated. This article suggests an alternative weighting mechanism based on specific management characteristics. In particular, we focus on publicly traded founder-CEO–led companies. Virtually all U.S. large-cap indexes contain at least some founder-CEO–led companies, and recent academic research suggests this variable may be responsible for significant portfolio alpha generation. Our evidence suggests that the founder-CEO factor may be significant not only in building a U.S. large-cap portfolio, it could also very well be one of the most significant factors in explaining excess returns. If true, then a smart beta orientation would be to simply overweight founder-CEO securities within the benchmark index or reduce the allocation to the benchmark index and add an incremental investment in a founder-CEO index. We provide a detailed analysis of a founder-CEO index, spanning several positive and negative economic cycles, and discuss the merits of pursuing this investment strategy. Our evidence suggests that investment managers would be wise to consider this strategy, especially if they can commit to a longer-term investment horizon.

  • © 2017 Pageant Media Ltd
View Full Text

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Index Investing: 8 (3)
The Journal of Index Investing
Vol. 8, Issue 3
Winter 2017
  • Table of Contents
  • Index by author
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Index Investing.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Leadership Matters: Crafting a Smart Beta Portfolio with a Founder-CEO Twist
(Your Name) has sent you a message from The Journal of Index Investing
(Your Name) thought you would like to see the The Journal of Index Investing web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Leadership Matters: Crafting a Smart Beta Portfolio with a Founder-CEO Twist
Joel M. Shulman
The Journal of Index Investing Nov 2017, 8 (3) 51-74; DOI: 10.3905/jii.2017.8.3.051

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Leadership Matters: Crafting a Smart Beta Portfolio with a Founder-CEO Twist
Joel M. Shulman
The Journal of Index Investing Nov 2017, 8 (3) 51-74; DOI: 10.3905/jii.2017.8.3.051
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • MAKING A CASE FOR THE FOUNDER-CEO FACTOR
    • DOES SMART BETA WORK WITH FOUNDER CEOs?
    • IDENTIFICATION OF FOUNDER CEOs
    • HOW DID THEY PERFORM? RETURN SUMMARY
    • PERFORMANCE ATTRIBUTION
    • PORTFOLIO RECOMMENDATIONS
    • SUMMARY
    • ENDNOTES
    • REFERENCES
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • Entrepreneurs Breed ESG-Rich Companies: Reap Exceptional Returns as Harvest Byproduct
  • Google Scholar

More in this TOC Section

  • Editor’s Letter
  • Editor’s Letter
  • Editor’s Letter
Show more Article
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Sign In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 2154-7238 | E-ISSN: 2374-135X

  • Site Map
  • Terms & Conditions
  • Privacy Policy
  • Cookies