Tarun Ramadorai is Professor of Financial Economics at Saïd Business School, University of Oxford. His areas of expertise include asset pricing, international finance, household finance, hedge funds, and the Indian economy.
Tarun is currently conducting research - sponsored by the Sloan Foundation in collaboration with Harvard University - that compares and contrasts household finance institutions (such as mortgage markets, or rules and regulations surrounding equity trading) around the world. The goal of the initiative is to learn how country-level institutions drive country-specific household finance outcomes, and to eventually generate practical guidance on the adoption of international best practices to improve the functioning of consumer financial markets around the world.
Another area of Tarun's research considers the correlation between different international asset markets and how capital flows into these markets affects pricing. Based on this work, he has contributed to the creation of forecasting models for international equity and currency returns.
He has also studied capital allocation to hedge funds and capacity constraints of hedge fund strategies. His work in this area includes developing models of performance measurement which are widely used in both the practitioner and academic communities.
In addition to his roles within Saïd Business School, Tarun is a member of the Executive Committee at the Oxford-Man Institute of Quantitative Finance, a Research Fellow of the Centre for Economic Policy Research (CEPR) in London, a Founding Senior Fellow of the Asian Bureau of Finance and Economic Research (ABFER), and a Nonresident Senior Fellow of the National Council for Applied Economic Research. During 2011 and 2012, he was a Visiting Scholar at the Economic Advisory Council to the Prime Minister of India. He has also served as an Economic Advisor to the European Securities and Markets Authority (ESMA).
Tarun joined Saïd Business School in 2003. He has a BA in Mathematics and Economics from Williams College, an MPhil in Economics from the University of Cambridge and a PhD in Business Economics from Harvard University. He has also spent time as a visiting academic at London Business School and the London School of Economics.
Tarun’s research encompasses four key areas:
In the area of household finance, Tarun has studied vast datasets of mortgage finance and equity trading in developed and emerging markets, with an emphasis on the role of regulation. Tarun has been instrumental in the establishment of the Oxford-Harvard-Sloan Initiative on International Comparative Household Finance which seeks to compare and contrast household finance institutions around the world. His work in this area includes the creation of metadata to reduce barriers to entry for young researchers interested in the field, see for example here.
In the area of international finance, Tarun has studied factors impacting the correlation between returns in different international asset markets, with an emphasis on how international investment flows affect these correlations and asset prices. Using these insights, he has contributed to the creation of forecasting models for international equity and currency returns, and to a deeper understanding of the phenomenon of crisis contagion. He has also worked on the impacts of international capital flows on real estate prices, with a specific focus on London.
Tarun has studied the performance, risk and capital formation of hedge funds; and he has contributed to some of the first published studies identifying the effects of capacity constraints on hedge-fund strategies. His work in this area also includes the development of new models of hedge fund performance measurement which are widely used in both the practitioner and academic communities.
The Indian Economy
Tarun has been closely engaged with research on India, using and compiling the largest datasets of mortgage activity and equity trading ever used in the country to conduct research on the impact of regulation in these markets. He has also contributed to a deeper understanding of investor psychology in the Indian market in his work on equity trading. He contributes to current policy debates in the country in a regular op-ed column for Mint, one of the largest circulating financial dailies in India.
In addition to his academic engagement at the School, Tarun has taken on numerous advisory roles in the area of financial regulation. In Europe, he has served as an Economic Adviser to the European Securities and Markets Authority (ESMA), the pan-European capital markets regulator. During 2011 and 2012, Tarun was Visiting Scholar with the Economic Advisory Council to the Prime Minister of India. In this role, he reviewed issues of financial regulation and financial policy in India, and engaged with the Government on multiple levels in an advisory capacity.
Tarun has consulted to numerous hedge funds and asset management firms including Man Investments, which has jointly established the Oxford-Man Institute of Quantitative Finance with Oxford University.
Tarun is a member of the Executive Committee at the Institute. He is also a founding Senior Academic Fellow of the Asian Bureau of Finance and Economics Research (ABFER), a Fellow of the Centre for Economic Policy Research (CEPR), a Senior Nonresident fellow of the National Council for Applied Economics Research in New Delhi, and formerly an Honorary Advisor to the National Institute of Public Finance and Policy in New Delhi
Tarun was instrumental in setting up and launching the Adam Smith conference, a major international conference on asset pricing and corporate finance. The first of these annual conferences was held in 2005, and the most recent conference took place at Saïd Business School in March 2012. He frequently presents at academic and industry conferences, including the NBER Meetings, and the American and Western Finance Association Meetings. He also served as the co-organiser of the CEPR European Summer Symposium in Financial Markets' Asset Pricing Week.
He is the recipient of numerous research grants and prizes, including recent grants from the Sloan Foundation and the International Growth Centre (IGC). Tarun has received several prizes for his academic papers. Most recently, his work was awarded the James A Lebenthal Memorial prize for excellence in Municipal Finance research. He has also received prizes from the Financial Management Association, INQUIRE UK, the CFA Institute, and the European Finance Association. His papers have also been finalists several times for the Smith-Breeden prize for the best paper published in the Journal of Finance.
Tarun is a referee for leading economics and finance journals, including the America Economic Review, Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Journal of Political Economy, Quarterly Journal of Economics, Review of Economic Studies and the Review of Financial Studies.
Tarun teaches Empirical Asset Pricing and Behavioural Finance on the MBA, Executive MBA, and the Masters in Financial Economics at Saïd Business School.
In the Empirical Asset Pricing course, Tarun equips students with the tools to understand asset-price movements and, particularly, to carry out empirically rigorous and theoretically focused analyses of asset pricing.
In his Behavioural Finance course, and in his executive teaching which focuses on International Asset Management and Investment, Tarun draws on a variety of different teaching methods, including the use of 'real cases' on topics such as international taxation and the foreign direct investment location decisions that have been developed jointly with senior practitioners; guest lectures; and analysis of real data. His goal in these courses to provide students with real-world insight into financial management issues in a global setting, and with a behavioural focus. In addition to these courses, Tarun has also taught courses in Hedge Funds, Equity Investment Management, and International Financial Management.
Tarun currently serves as Director of the KPMG Investment Management Programme, and has directed the Oxford Global Investment Risk Management programme offered in association with the CFA Institute. These programmes are designed to help finance professionals build expertise in identifying the latest trends and the most important risks in global investment, and develops techniques used to customize businesses, and to effectively monitor and manage risks associated with global investment.
Saïd Business School
University of Oxford
Park End Street