Narayan Naik

Professor of Finance (on leave from London Business School)

BTech (IIT, Bombay) MBA (IIM, Ahmedabad) PhD (Duke) (on leave from London Business School)

Professor Narayan Naik is recognized as one of the leading experts on hedge fund investing. Over the last decade he has authored a significant body of work in hedge funds benchmarking, performance evaluation of long-only managers, tail-risk hedging, life settlements-longevity risk and market microstructure. His work has appeared in the top finance journals, leading practitioner journals and financial press. Professor Naik’s teaching includes the following subjects: Strategic Investment Management, Equity Investment Management and Hedge Funds.

Since joining London Business School (LBS) in 1991, Professor Naik has played a key role in the development of the finance group at LBS, most notably in the role of Director of the PhD Programme in Finance, Director of the School’s Investment Management Programme, Director of the Hedge Fund Research Centre and more recently, one of the Academic Directors of the AQR Asset Management Institute at LBS.

Professor Naik has designed, and taught tailor-made courses in corporate finance, investment management, Islamic Finance and hedge funds for investment banks and financial institutions. His most recent innovation has been the creation of FinTech and the Financial Services Industry Transformation elective. This course examines innovative technology-driven transformation of old business models in the financial services sector. Professor Naik’s research interests also lie within this field, exploring how Financial Technology is breaking the financial services value chain through more efficient provisioning of Payments, Deposits and Lending, Capital Raising, Wealth Management, Insurance, Market Data Analytics, as well as the impact on businesses on by the BlockChain and Cryptocurrency technology.

Professor Naik has appeared many times on CNN, CNBC, Bloomberg, the BBC, ITV and other news channels as an expert finance academic. He has consulted widely during his career for the World Bank, sovereign wealth funds in the Middle East, and private corporations in the UK, USA, Middle East and Far East.

Research Awards

The Inquire UK Award for the Best Paper presented at Inquire Europe conferences, 2008.
Commonfund Institute’s Best Paper Award, European Finance Association, Slovania, 2007.
The Man Investments Award for the Best Paper on Hedge Funds, European Finance Association, Zurich, 2006.
The Fauchier Partners’ Award for the Best Paper on Hedge Funds received at the European Finance Association Meetings in Glasgow, 2003.
The New York Stock Exchange Award for the Best Paper on Market Microstructure received at the European Finance Association Meetings in Glasgow, 2003.
The Inquire Europe Award for the Best Paper presented at Inquire Europe conferences, 2001.
The Robert J. Schwartz Award for Best Paper on Hedging with Derivatives, 2000.
The New York Stock Exchange Award for the Best Paper on Equity Trading received at the Western Finance Association Meetings in San Diego, 1997.

Life settlements and longevity risk
Tail-risk hedging
Performance measurement
Hedge funds
Portfolio selection
Capital markets

2023

Diverse hedge funds

Lu Y; Naik N Y; Teo M

Review of Financial Studies 2023 Vol 37:2 p 639-683

2021

Forecasting long-horizon volatility for strategic asset allocation

Cardinale M; Naik N Y; Sharma V

Journal of Portfolio Management 2021 Vol 47:4 p 83-98

Hedge fund franchises

Fung W; Hsieh D A; Naik N Y; Teo M

Management Science 2021 Vol 67:2 p 1199-1226

2017

Volatility of aggregate volatility and hedge fund returns

Agarwal V; Arisoy E Y; Naik N Y

Journal of Financial Economics 2017 Vol 125:3 p 491-510

2015

The economics and finance of hedge funds: a review of the available literature

Naik N Y; Agarwal V; Mullally K

Foundations and Trends in Finance 2015 Vol 10:1 p 1-111

2012

Funds of hedge funds: Performance, risk and capital formation 2005 to 2010

Edelman D; Fung W; Hsieh D; Naik N

Financial Markets and Portfolio Management 2012 Vol 26:1 p 87-108

2011

2009

Effect of managerial incentives and discretion on performance of hedge funds

Agrawal V; Daniel N; Naik N

Journal of Finance 2009 Vol 64:5 p 2221-2256

Hedge funds for retail investors? An examination of hedged mutual funds

Agarwal V; Boyson N M; Naik N Y

Journal of Financial and Quantitative Analysis 2009 Vol 44:2 p 273-305

2008

Hedge funds: Performance, risk and capital formation

Naik N Y; Fung D; Hsieh D; Ramadorai T

Journal of Finance 2008 August Vol 63:4 p 1777-1803

2007

2005

Hedge funds

Naik N Y; Agarwal V

Foundations and Trends in Finance 2005 December Vol 1:2 p 103-170

Strategic trading behaviour and price distortion in a manipulated market: anatomy of a squeeze

Merrick J; Naik N Y; Yadav P

Journal of Financial Economics 2005 Jul Vol 77:1 p 171-218

2004

Risks and portfolio decisions involving hedge funds

Naik N Y; Agarwal V

Review of Financial Studies 2004 Spring Vol 17:1 p 63-98

2003

Do dealer firms make a market on a stock-by-stock basis or a portfolio basis?

Naik N Y; Yadav P

Journal of Financial Economics 2003 Vol 69:2 p 18873-1904

Risk management with derivatives by dealers and market quality in government bond market

Naik N Y; Yadev P

Journal of Finance 2003 Vol 58:2 p 325-353

2002

Hedge Funds: Charackteristika und Risiken

Naik N Y; Agarwal V

Absolut Report: Die erste Publickation fur Alternative Investment in Deutschland 2002 Feb Vol 2 p 8-14

Introduction to hedge funds

Naik N Y; Agarwal V

Gestion Alternative: Recueil d'Opinions (AFG-ASFFI) 2002 Juillet

2001

Creative funds that have come into their own

Agarwal V; Naik N Y

Financial Times 2001 Jun 11

2000

1999

Disclosure regulation in markets with negotiated trades

Naik N Y; Neuberger A J; Viswanathan S

Review of Financial Studies 1999 Vol 12:4 p 873-900

Preferencing, internalization and best execution: evidence from the London Stock Exchange

Hansch O; Naik N Y; Viswanathan S

Journal of Finance 1999 Vol 54:5 p 1799-1828

1998

1997

1996

Habit formation and intertemporal substitution in individual food consumption

Naik N Y; Moore M J

Review of Economics and Statistics 1996 May Vol 78:2 p 321-328

Models of information aggregration in financial markets

Habib M A; Naik N Y

Applied Mathematical Finance 1996 Vol 3 p 159-166

2019

Is firm-specific political risk priced?

Gorbatikov E; Naik N; Sharma V; Tahoun A; van Lent L

Working Paper

2016

Alpha decay and strategic trading

Lines A; Di Mascio R; Naik N

Social Sciences Research Network

Growing the asset management franchise: evidence from hedge fund firms

Fung W; Hsieh D; Naik N; Teo M

Social Sciences Research Network

2014

2012

Active risk taking by institutional money

Naik N

Working Paper

Secondary market for life insurance policies: experience of sellers and buyers

Naik N

Working Paper

2008

Do hedge funds manage their reported returns?

Agarwal V; Daniel N; and Naik N

BNP Paribas Hedge Fund Centre Working Paper Series

Investing in hedge funds when returns are predictable

Avramov D; Kosowski R; Naik N Y; Teo M

BNP Paribas Hedge Fund Centre Working Paper Series

2007

2006

2004

Flows and performance in the hedge fund industry

Agarwal V; Daniel N; Naik N Y

Centre for Hedge Fund Research and Education Working Paper

Flows, performance, and managerial incentives in hedge funds

Agarwal V; Daniel N D; Naik N Y

Centre for Hedge Fund Research and Education Working Paper

2002

2001

2000

Do market intermediaries hedge their risk exposure with derivatives?: evidence from UK Government bond dealers' spot and derivatives positions

Naik N Y; Yadav P K

IFA Working Paper

Does gain-loss analysis outperform mean-variance analysis?: evidence from portfolios of hedge funds and passive strategies

Agarwal V; Naik N Y

IFA Working Paper

Inventory risk management in the government bond market: evidence from spot and derivatives positions of dealers in London

Naik N Y; Yadav P K

IFA Working Paper

Multi-period performance persistence analysis of hedge funds

Agarwal V; Naik N Y

IFA Working Paper

Performance evaluation of hedge funds with option-based and buy-and-hold strategies

Agarwal V; Naik N Y

IFA Working Paper

1999

Effects of market reform on trading costs of public investors: evidence from the London Stock Exchange

Naik N Y; Yadav P K

IFA Working Paper

On taking the 'alternative' route: risks, rewards, style and performance persistence of hedge funds

Agarwal V; Naik N Y

IFA Working Paper

1997

Liquidity and stock returns: an alternative test

Datar V; Naik N Y; Radcliffe R

IFA Working Paper

Preferencing, internalization and the best execution: evidence from the London Stock Exchange

Hansch O; Naik N Y; Viswanathan S

IFA Working Paper

Teaching portfolio

Our teaching offering is updated annually. Faculty and programme material are subject to change.

Masters Degrees electives

Optional courses providing a deep dive into specialist areas.
View electives Show less
Equity Investment Management

The Equity Investment Management course covers Strategic and Tactical asset allocation, Portfolio Optimization, Risk Measurement, Factor models of returns, Active-Passive management, Long-Short investing, Behavioural Finance, Style Analysis and Performance Measurement. It highlights some recent developments and how they are having an impact on all aspects of investment management
PROGRAMMES WITH THIS ELECTIVE

Executive MBA Dubai

Executive MBA London

EMBA-Global

Masters in Analytics and Management

MBA

Masters in Finance Full-time

Masters in Finance Part-time

LBS Sloan Masters in Leadership and Strategy

Fin Tech

Multiple new technologies are finding their way into financial services, including artificial intelligence, machine learning, distributed ledger technology, cryptography, digital identity, SaaS platforms, chatbots, robotic process automation, and augmented reality. This has triggered the opportunity to fundamentally morph the business model of practically every financial services vertical - including payments, deposits & retail banking, lending, capital raising, wealth management, insurance, financial infrastructure, and regulation.
PROGRAMMES WITH THIS ELECTIVE

Executive MBA Dubai

Executive MBA London

EMBA-Global

Masters in Analytics and Management

MBA

Masters in Financial Analysis

Masters in Finance Full-time

Masters in Finance Part-time

Masters in Management

LBS Sloan Masters in Leadership and Strategy

Project and Infrastructure Finance

The Project and Infrastructure Finance course focuses on the application of techniques and principles to structure, value and finance large-scale infrastructure and industrial projects. The course describes the many ways in which project finance techniques can be used to redistribute and mitigate the risks typically found in these complex projects. Students will work through a series of case studies to apply project finance techniques to real-life projects such as Public-Private Partnership (PPP) infrastructure concessions and commodity development opportunities
PROGRAMMES WITH THIS ELECTIVE

Executive MBA Dubai

Executive MBA London

EMBA-Global

Masters in Analytics and Management

MBA

Masters in Financial Analysis

Masters in Finance Full-time

Masters in Finance Part-time

Masters in Management

LBS Sloan Masters in Leadership and Strategy
Show less
Executive Education

Short programmes offering academic excellence, global focus and exceptional diversity of perspective.
View programmes Show less
Masterclass in Private Equity

Masterclass in Private Equity

Strategic Investment Management

Strategic Investment Management
Show less

Narayan Naik

Research Awards

Teaching portfolio

Masters Degrees electives

PROGRAMMES WITH THIS ELECTIVE

PROGRAMMES WITH THIS ELECTIVE

PROGRAMMES WITH THIS ELECTIVE

Executive Education