Knowledge Management in Asset Management

25 Pages Posted: 7 Feb 2020

See all articles by Eduard van Gelderen CFA FRM

Eduard van Gelderen CFA FRM

PSP Investments ; International School of Management (ISM) Paris

Ashby Monk

Stanford University

Date Written: August 11, 2015

Abstract

The idea that superior knowledge is required to drive financial outperformance runs counter to some of the most pervasive theoretical frameworks used by investors today. The Efficient Market Hypothesis and the Capital Asset Pricing Model, for example, posit that capital markets are efficient and that no consistent outperformance can be generated without increasing risk. Active asset managers, however, argue differently and claim that skills and knowledge are critical for capturing excess returns. We agree. In fact, in this paper we argue that knowledge assets and the use of superior knowledge are crucial to the success of all asset managers and, in particular, active managers. And yet, despite its clear importance, very little is known about knowledge management in asset management. This article thus seeks to remedy this by offering insight into the role that knowledge plays in the investment process and, more specifically, into the adoption of knowledge management by asset managers. The paper concludes with a blueprint that offers a way for investors to become knowledge and asset managers.

Keywords: Knowledge Management, Asset Management, Institutional Investment, Organizational Design

Suggested Citation

van Gelderen, Eduard and Monk, Ashby, Knowledge Management in Asset Management (August 11, 2015). Available at SSRN: https://ssrn.com/abstract=2642467 or http://dx.doi.org/10.2139/ssrn.2642467

Eduard Van Gelderen

PSP Investments

International School of Management (ISM) Paris ( email )

148, rue de Grenelle
Paris, 75007
France

Ashby Monk (Contact Author)

Stanford University ( email )

United States

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