Searching for and evaluating outsourced chief investment officers

Daehyeon Park and Doojin Ryu

Managerial and Decision Economics, 2023, vol. 44, issue 7, 3923-3931

Abstract: This study analyzes the impact of the outsourced chief investment officer (OCIO) index and OCIO search consultant on asset owners' selection of OCIOs. We adopt an agent‐based model with a reinforcement learning method by defining the OCIO search problem as a multi‐armed bandit problem. Our model highlights the significance of the information regarding potential managers provided by the OCIO index and an OCIO search consultant. Our simulation results indicate that the more managers in the market, the harder it is for asset owners to identify the optimal OCIO. If asset owners place greater emphasis on their preferences when evaluating OCIOs, those challenges might be eased. Our results suggest that OCIO search consultants and the OCIO index can support asset owners' decision‐making.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/mde.3917

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:44:y:2023:i:7:p:3923-3931

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().