Assistant Professor of Finance
Yuki Sato has been SFI Assistant Professor of Finance at the University of Lausanne since 2011. He obtained his PhD in Economics from the London School of Economics. During his academic studies, Prof. Sato has received a number of awards and scholarships.
His work focuses on the pricing of financial assets in the presence of market frictions.
A recent study by Prof. Sato investigates the impact of peer performance among institutional investors on investment strategies and asset bubbles. Individual investors behave differently from institutional investors; the former seek to maximize the risk-adjusted return of their portfolio, while the latter typically compete against their peers and ultimately seek to outperform them. In the case of tournaments where the ranking is too close to call, institutional investors fuel bubbles by riding them for a long time; in the case of moderate tournaments, they attack the bubbles quickly. Overall, these results provide explanations regarding the empirical variation that persists in funds’ investment strategies during bubble periods.