The Oxford-Man Institute of Quantitative Finance, to give this newly-minted academic institution its full name, is being funded by the hedge fund — the intention being to create “the world’s leading interdisciplinary academic institute for research into quantitative finance, with a particular emphasis on alternative investments.”
So don’t expect an academic production line churning out Dagenham Daves.
Man Group is providing the core funding for a body (based in Oxford, obviously) with 10 senior faculty members and a further 10 full-time researchers and ancillary staff. Managerial oversight will be provided by Prof Neil Shephard, an Oxford professor of economics, who aims to provide “a central focal point for the world’s leading research in quantitative finance.”
“The Institute will be truly interdisciplinary across the University, and will include researchers from many of the University’s schools and departments,” Prof Shephard added.
For the record, the Oxford-Man Institute defines quantitative finance thus: “all systematic and quantitative methodologies, analysis techniques and theory that are applicable to the investigation and allocation of economic and financial resources within the professional management of capital.”
“The Institute’s researchers generally will study problems varying from the economic sources of out-performance of hedge funds to how to statistically analyse vast quantities of streaming data relevant to the characterisation of risk”, said Prof Keith Burnett, Head of the Mathematical, Physical and Life Sciences Division at Oxford, who is also involved with the project.
Aside from research, a programme of Oxford-Man Distinguished Lectures are promised, along with conferences, workshops and the like.
Man is stumping up £13.7m, initially, £3.3m of which is being allocated to an endowed chair — the Man Professor of Quantitative Finance.
FT Alphaville will be seeking an invite to this esteemed new faculty. Whether we understand a word of what’s going on once we get there is another matter.