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The Paul Woolley Centre for the Study of Capital Market Dysfunctionality
Financial Markets Group
London School of Economics
Houghton Street
London WC2A 2AE, UK

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Dimitri Vayanos

Tel:  +44 (0)207 852 3502
Email: cmdcentre.fmg@lse.ac.uk




The Paul Woolley Centre for the study of capital market dysfunctionality

The Paul Woolley Centre is based in the LSE Financial Markets Group and produces high-quality research relating to understanding the workings of capital markets and the social efficiency of allocations achieved in these markets.
Read more about the Paul Woolley Centre >>>



Action must be taken to stop quants exploiting weakness

Investors are hiring managers to wage damaging battles with each other

Article by Paul Woolley and Dimitri Vayanos

Financial Times, July 2017


10th Annual Paul Woolley Centre Conference

The annual Paul Woolley Centre Conference continues to provide an excellent opportunity to disseminate research and stimulate new ideas by bringing together leading researchers working on the broad themes of contracts and organisational structure, market frictions and asset prices, allocative efficiency and the macro-economy, and policy implications. The Centre’s 10th conference took place at LSE on 1st and 2nd June 2017.



New working paper highlights the 'Curse of the Benchmarks' in financial markets

A new working paper by Dimitri Vayanos and Paul Woolley suggests that using stock market indexes as benchmarks of investment performance causes most of the problems associated with asset pricing and asset management: risk/return inversion, short-termism, bubbles and crashes, and  low returns. Intriguingly, momentum funds game benchmarked funds and exacerbate the distortions. Read the paper.

Press coverage: Financial TimesMorningstar (part 1 / part 2)Irish Times; Barron's;Reuters


Paul Woolley Centre research is part of MSCI's 'Crowding Scorecard' for traders

A novel measure of arbitrage activity, developed by Dr Dong Lou and Professor Christopher Polk to examine whether arbitrageurs can have a destabilizing effect in the stock market, has been featured by investment experts MSCI in their “crowding scorecard” as one of four key metrics for monitoring and detecting the potential crowding risk for any investment strategy. Read more.


ArticleA new contract for growth

Short-termism may be caused by the way investors employ fund managers

The Economist,  August 2015



Article: The Morning Risk Report: How Activist Wolf Packs Work

Wall Street Journal,  February 2015


First BIS research network meeting

On 9-10 September 2014 the Paul Woolley Centre jointly organised the first BIS research network meeting on banking and asset management.  Held in Basel, the event was attended by researchers from academia and central banks. The theme was banking and asset management, and it explored the interaction between capital and liquidity regulation, the channel of adjustment of bank capital to the new Basel III environment; leverage ratio pro-cyclicality, asset management flows and equilibrium prices.

Prof Vayanos elected to the British Academy

We are delighted to announce that Prof Dimitri Vayanos (Director of the Paul Woolley Centre and Professor of Finance, LSE) has been elected a Fellow of the British Academy. Each year, the British Academy elects into its Fellowship UK-based scholars who are highly distinguished academics and who are recognised for their outstanding research and work across the humanities and social sciences. Prof Vayanos is one of only 42 new Fellows elected this year, 4 of whom are from LSE.

For earlier announcements please see the Paul Woolley Centre news pages.

For previous interviews and articles please browse the Paul Woolley Centre in the media archive.