Sanford Grossman
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Sanford "Sandy" Jay Grossman (born July 21, 1953) is an American
economist An economist is a professional and practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...
and
hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...
manager specializing in
quantitative finance Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling in the financial field. In general, there exist two separate branches of finance that requ ...
. Grossman's research has spanned the analysis of information in securities markets, corporate structure,
property rights The right to property, or the right to own property (cf. ownership), is often classified as a human right for natural persons regarding their Possession (law), possessions. A general recognition of a right to private property is found more rarely ...
, and optimal dynamic risk management. He has published widely in leading economic and business journals, including ''
American Economic Review The ''American Economic Review'' is a monthly peer-reviewed academic journal first published by the American Economic Association in 1911. The current editor-in-chief is Erzo FP Luttmer, a professor of economics at Dartmouth College. The journal is ...
'', ''
Journal of Econometrics The ''Journal of Econometrics'' is a monthly peer-reviewed academic journal covering econometrics. It was established in 1973. The editors-in-chief are Michael Jansson (University of California Berkeley) and Aureo de Paula (University College Lon ...
'', ''
Econometrica ''Econometrica'' is a peer-reviewed academic journal of economics, publishing articles in many areas of economics, especially econometrics. It is published by Wiley-Blackwell on behalf of the Econometric Society. The current editor-in-chief is ...
'', and ''
Journal of Finance ''The Journal of Finance'' is a peer-reviewed academic journal published by Wiley-Blackwell on behalf of the American Finance Association. It was established in 1946. The editor-in-chief is Antoinette Schoar. According to the ''Journal Citation R ...
''. His research in macroeconomics, finance, and risk management has earned numerous awards. Grossman is currently chairman and CEO of QFS Asset Management, an affiliate of which he founded in 1988. QFS Asset Management shut down its sole remaining hedge fund in January 2014.


Academic career

Sanford Grossman earned his A.B. in 1973, his A.M. in 1974 and
Ph.D. A Doctor of Philosophy (PhD, DPhil; or ) is a terminal degree that usually denotes the highest level of academic achievement in a given discipline and is awarded following a course of graduate study and original research. The name of the deg ...
in 1975, all in economics from the
University of Chicago The University of Chicago (UChicago, Chicago, or UChi) is a Private university, private research university in Chicago, Illinois, United States. Its main campus is in the Hyde Park, Chicago, Hyde Park neighborhood on Chicago's South Side, Chic ...
. Since receiving his doctorate, he has held academic appointments at
Stanford University Leland Stanford Junior University, commonly referred to as Stanford University, is a Private university, private research university in Stanford, California, United States. It was founded in 1885 by railroad magnate Leland Stanford (the eighth ...
, the
University of Chicago The University of Chicago (UChicago, Chicago, or UChi) is a Private university, private research university in Chicago, Illinois, United States. Its main campus is in the Hyde Park, Chicago, Hyde Park neighborhood on Chicago's South Side, Chic ...
,
Princeton University Princeton University is a private university, private Ivy League research university in Princeton, New Jersey, United States. Founded in 1746 in Elizabeth, New Jersey, Elizabeth as the College of New Jersey, Princeton is the List of Colonial ...
(as the John L. Weinberg Professor of Economics, 1985–89), and at the
University of Pennsylvania The University of Pennsylvania (Penn or UPenn) is a Private university, private Ivy League research university in Philadelphia, Pennsylvania, United States. One of nine colonial colleges, it was chartered in 1755 through the efforts of f ...
’s Wharton School of Business. At Wharton, Grossman held the position of Steinberg Trustee Professor of Finance from 1989 to 1999 (a title now held in Emeritus) and also served as the Director of the Wharton Center for Quantitative Finance (1994–1999).


Professional career

Grossman served as an Economist with the
Board of Governors A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulations ...
of the
Federal Reserve System The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of ...
(1977–78), and was a Public Director of the largest U.S. options and futures exchange, the
Chicago Board of Trade The Chicago Board of Trade (CBOT), is an American futures exchange, futures and options exchange that was founded in 1848. On July 12, 2007, the CBOT merged with the Chicago Mercantile Exchange (CME) to form CME Group. CBOT and three other excha ...
(1992–96). In 1988, he was elected a Director, in 1992 served as Vice President, and in 1994 was President of the
American Finance Association The American Finance Association (AFA) is an academic organization whose focus is the study and promotion of knowledge of financial economics. It was formed in 1939. Its main publication, the ''Journal of Finance'', was first published in 1946. ...
. Grossman formed an affiliate o
QFS Asset Management, L.P.
in 1988. The firm is based in
Greenwich, Connecticut Greenwich ( ) is a New England town, town in southwestern Fairfield County, Connecticut, United States. As of the 2020 United States census, 2020 census, it had a population of 63,518. It is the largest town on Gold Coast (Connecticut), Connectic ...
, and is an
alternative investment An alternative investment, also known as an alternative asset or alternative investment fund (AIF), is an investment in any Asset classes, asset class excluding capital stocks, Bond (finance), bonds, and cash. The term is a relatively loose ...
management firm that uses financial investment models based on Grossman's research in economics and quantitative finance. The firm specializes in
global macro Global macro is an investment strategy that leverages Macroeconomics, macroeconomic and Geopolitics, geopolitical data to analyze and predict moves in Financial market, financial markets. Large-scale or "wiktionary:macro, macro" political and econ ...
and
foreign exchange The foreign exchange market (forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. By trading volume, it i ...
investment strategies.


Awards

Grossman’s original contributions to economic research received official recognition when he was awarded the
John Bates Clark Medal The John Bates Clark Medal is awarded by the American Economic Association to "that American economist under the age of forty who is adjudged to have made a significant contribution to economic thought and knowledge." The award is named after the ...
by the
American Economic Association The American Economic Association (AEA) is a learned society in the field of economics, with approximately 23,000 members. It publishes several peer-reviewed journals, including the Journal of Economic Literature, American Economic Review, an ...
at its December 1987 annual meeting. That same year the Q-Group awarded him first prize in The Roger F. Murray Prize competition for the paper “An Analysis of the Implications for Stock and Future Price Volatility of Program Trading and Dynamic Hedging Strategies.” The editorial board of the Financial Analysts Journal awarded him the 1988 Graham and Dodd Scroll for “Program Trading and Market Volatility: A Report on Interday Relationships.” Grossman received a Mathematical Finance 1993 Best Paper Award for his article “Optimal Investment Strategies for Controlling Drawdowns.” Grossman received the 1996 Leo Melamed Prize by the University of Chicago Graduate School of Business for outstanding scholarship by a professor. In 2002, Grossman was recognized by the University of Chicago with its Professional Achievement Citation. Most recently, he was awarded the 2009
CME Group CME Group Inc. is an American financial services company based in Chicago that operates financial derivatives exchanges including the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, and the Commodity Exchange. ...
-MSRI Prize in Innovative Quantitative Applications.


Publications

Books: * Articles: * * * * * * * * * * * * * Sanford J. Grossman; Joseph Stiglitz, Joseph E. Stiglitz. (1980). "On the Impossibility of Informationally Efficient Markets." The American Economic Review 70 (3). https://www.jstor.org/stable/1805228 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *


References


External links


Profile at University of Pennsylvania's Wharton School of Business

List of publications at University of Connecticut's Economics and Finance Research web site

Interview with hedge fund newsletter


* {{DEFAULTSORT:Grossman, Sanford J. 1953 births Living people University of Chicago alumni American financial economists 21st-century American economists American hedge fund managers University of Pennsylvania faculty Fellows of the Econometric Society Fellows of the American Academy of Arts and Sciences 20th-century American Jews Presidents of the American Finance Association 21st-century American Jews