Aditya Jadhav CFA

Aditya Jadhav CFA

Mumbai, Maharashtra, India
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About

CFA charterholder with expertise of working for leading VC and Private Equity funds. At…

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Experience

  • Ecosystem Ventures Graphic

    Ecosystem Ventures

    Mumbai, Maharashtra, India

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    Mumbai, Maharashtra, India

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    Mumbai Area, India

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    Mumbai Area, India

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    Aurangabad, Maharashtra, India

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    Mumbai

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    Mumbai Area, India

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    Mumbai Area, India

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    Mumbai Area, India

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    Mumbai Area, India

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    Mumbai, Maharashtra, India

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Education

  • CFA Institute

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Licenses & Certifications

Volunteer Experience

  • CFA Institute Graphic

    Volunteer at Indian Association of Investment Professionals (IAIP - CFA India

    CFA Institute

    - Present 12 years 3 months

    Volunteer at Indian Association of Investment Professionals (IAIP - CFA India Society)
    Member of Employer Outreach group (2013)

  • CFA Institute Graphic

    Abstractor to CFA Digest

    CFA Institute

    - Present 12 years

    Education

    The CFA Digest distills selected current industry research into short, easy-to-read abstracts so that the busy professional can monitor new developments in the industry. Abstractors contribute their time and expertise to summarizing the best articles and research for the benefit of the full membership of CFA Institute and investment professionals in general.

  • Equity Research Report Grader

    CFA Institute Research Challenge in India

    - Present 12 years 7 months

    Education

    The CFA Institute Research Challenge is a global competition which tests the analytic, valuation, report writing, and presentation skills of university students. As a Grader, I reviewed and graded the student teams' research reports. I contributed 20 hours of work in this position during the competition cycle.

  • Indian Association of Investment Professionals (IAIP) - India CFA Society Graphic

    Chair - Technology Committee

    Indian Association of Investment Professionals (IAIP) - India CFA Society

    - Present 9 years 10 months

    Education

Publications

  • Determinants of Analysts’ Target P/E Multiples

    CFA Digest

    Although income discounting methods such as discounted cash flow receive more emphasis in the literature, sell-side analysts prefer to use such relative valuation methods as the P/E multiple. Empirical research shows a strong correlation between the P/E multiple an analyst applies and the quality of the assets being valued. The authors examine how analysts determine the forward P/E multiple for valuation. Their findings will be helpful to investors attempting to make sound investment decisions.

    See publication

  • Do “Hot Hands” Exist in Funds of Hedge Funds?

    CFA Digest

    Examining the performance persistence in the funds of hedge funds (FoHFs) industry, the authors find FoHFs that show performance persistence over the short term are more likely to display performance persistence over the longer term. In addition, FoHFs without a hurdle rate have higher performance persistence than FoHFs with a hurdle rate.
    Considering that compared with mutual funds, investments in funds of hedge funds (FoHFs) are illiquid in nature, have a long lock-up period…

    Examining the performance persistence in the funds of hedge funds (FoHFs) industry, the authors find FoHFs that show performance persistence over the short term are more likely to display performance persistence over the longer term. In addition, FoHFs without a hurdle rate have higher performance persistence than FoHFs with a hurdle rate.
    Considering that compared with mutual funds, investments in funds of hedge funds (FoHFs) are illiquid in nature, have a long lock-up period, and have infrequent redemption notices, little is known about the performance persistence of FoHF managers. A surprising fact that the authors highlight is that FoHFs from the smallest quartile (in terms of assets under management) exhibit the highest performance persistence. Their analysis also reveals that FoHFs with incentive fees that are less than the average show more performance persistence than those with higher-than-average incentive fees.

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  • Restoring Value to Minimum Variance

    CFA Digest

    Factor analysis of minimum-variance portfolios reveals that style factors, such as volatility, size, and value, are responsible for the anomaly of earning a higher return while bearing lower risk. The popularity of the minimum-variance strategy has led to investors starting to pay a premium for lower-risk stocks, thus making it difficult to construct a minimum-variance portfolio at lower cost. But the authors show that this cost can be lowered by using a value-tilted minimum-variance strategy.

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  • Technology Transactions, Announcement Effect, and Reversal: Dissecting an Anomaly

    CFA Digest

    The authors investigate a return reversal anomaly in which firms that acquire or sell technology rights experience a price surge followed by a reversal. They find that between the day before and the day after the announcement day of a firm acquiring technology rights, both the buyer and the seller gain statistically significant positive returns of 1% (for buyers) and 5% (for sellers). This gain, however, reverses over the ensuing 20 trading days. This quick price reversal has no identified…

    The authors investigate a return reversal anomaly in which firms that acquire or sell technology rights experience a price surge followed by a reversal. They find that between the day before and the day after the announcement day of a firm acquiring technology rights, both the buyer and the seller gain statistically significant positive returns of 1% (for buyers) and 5% (for sellers). This gain, however, reverses over the ensuing 20 trading days. This quick price reversal has no identified explanation.

    The research reveals the persistence of this anomaly throughout the authors’ study period (1970–2009) after different market conditions (e.g., bull versus bear markets) and the type of firm acquiring the technology rights (e.g., low tech versus high tech) are controlled for. The authors find, however, that the post-announcement reversal is confined to firms that experienced negative stock price momentum leading up to the announcement day. Firms that had prior positive momentum experienced no post-announcement reversal.

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  • Dividend-Price Ratios and Stock Returns: International Evidence

    CFA Digest

    The Gordon growth formula can be written in the form of the dividend–price ratio as (Dt/P0) = R – g, under the assumptions that future dividends will grow at a constant rate (i.e., g) forever and that the expected returns on equity (i.e., R) will never change. The ability of this ratio to predict future returns is a question of widespread debate among both academics and market participants because some believe that the dividend–price ratio is a predictor of future dividend growth. Empirical…

    The Gordon growth formula can be written in the form of the dividend–price ratio as (Dt/P0) = R – g, under the assumptions that future dividends will grow at a constant rate (i.e., g) forever and that the expected returns on equity (i.e., R) will never change. The ability of this ratio to predict future returns is a question of widespread debate among both academics and market participants because some believe that the dividend–price ratio is a predictor of future dividend growth. Empirical research has revealed that the dividend–price ratio can forecast future returns because the ratio is high when expected returns are likely to be high and vice versa. But as the author hypothesized in previous work, the relationship is dependent on the volatility of real dividend growth.
    In the United States, the dividend–price ratio has the ability to forecast future returns but not future dividend growth. For every 1 percentage point rise in dividend yield, market prices rise by more than 5 percentage points. This relationship is statistically insignificant in other countries, such as Germany, Italy, and Sweden.

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  • Demographics of Dividends

    CFA Digest

    Empirical evidence from previous studies has indicated that a firm’s dividend policy is affected by such factors as a changing market environment and various characteristics of the firm. But the author’s analysis indicates that there are factors related to CEO leadership attributes, such as marital status, age, education, and other personality traits, that also influence a firm’s dividend policy.
    Although a lot of research has been done on the relationship between a firm’s…

    Empirical evidence from previous studies has indicated that a firm’s dividend policy is affected by such factors as a changing market environment and various characteristics of the firm. But the author’s analysis indicates that there are factors related to CEO leadership attributes, such as marital status, age, education, and other personality traits, that also influence a firm’s dividend policy.
    Although a lot of research has been done on the relationship between a firm’s financial/corporate decisions and its CEO’s characteristics, the relationship between a CEO’s demographic attributes and a firm’s dividend policy is unclear. The author finds that companies led by CEOs who are married, are affiliated with the US Republican political party, profess to be Christians, and have children maintain higher dividend yields. They are also more likely to significantly increase dividends and experience deteriorating performance in the years following the increase. Companies led by older, long-term employees who became the CEO were also likely to significantly increase dividends but were not associated with significant variation in subsequent firm operating and stock price performance.

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  • Extreme Wage Inequality: Pay at the Very Top

    CFA Digest

    The past decade has seen a remarkable rise in income inequality in the United Kingdom. The authors explore not only the wages but also the share of income and wages at the very top of the corporate hierarchy in the country and find that workers in the financial sector account for the majority of the inequality trend.

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  • Risk Parity, Maximum Diversification, and Minimum Variance: An Analytic Perspective

    CFA Digest

    The historical fact that low-volatility stocks tend to outperform the market combined with investors’ move toward risk management in the wake of the financial crisis has led to the increased interest in equity portfolios with the lowest possible variance. With an objective function of maximizing the Sharpe ratio of a portfolio, the authors provide an analytic solution for a long-only, constrained, maximum diversification portfolio—a tangent portfolio on the efficient frontier. The analytic…

    The historical fact that low-volatility stocks tend to outperform the market combined with investors’ move toward risk management in the wake of the financial crisis has led to the increased interest in equity portfolios with the lowest possible variance. With an objective function of maximizing the Sharpe ratio of a portfolio, the authors provide an analytic solution for a long-only, constrained, maximum diversification portfolio—a tangent portfolio on the efficient frontier. The analytic solution also tries to provide justification for the reasons behind the selection of an investable asset class for a risk-based portfolio and the reasons behind the particular weight assigned to it.
    The proposed analytic solution in this article confirms that in terms of risk minimization (i.e., higher Sharpe ratios), minimum variance portfolios are superior to risk parity and maximum diversification portfolios. The low number of securities in the minimum variance portfolio proves that risk can be minimized by including fewer, less correlated stocks rather than just by adding more stocks.

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  • Book Review: The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary

    India Association of Investment Professionals (IAIP)

    I love days when I could go to the coffee shop unhurried and have my hot Latté while reading. One such fine day when I was flipping through newspaper, news that transfixed me was that Starbucks is entering India in a joint venture with the Tata Group, when rumours were making rounds that Jubilant Foodworks may tie up with Starbucks. With revenues of $13.3 billion last year and 20,891 shops in 62 countries, Starbucks is clearly the world’s top coffee retailer. But in a predominant Indian tea…

    I love days when I could go to the coffee shop unhurried and have my hot Latté while reading. One such fine day when I was flipping through newspaper, news that transfixed me was that Starbucks is entering India in a joint venture with the Tata Group, when rumours were making rounds that Jubilant Foodworks may tie up with Starbucks. With revenues of $13.3 billion last year and 20,891 shops in 62 countries, Starbucks is clearly the world’s top coffee retailer. But in a predominant Indian tea market, where there are already about 1700-1800 operating coffee shop chain stores; how Starbucks will be able to make the difference and woo customers with the help of a partner, who don’t even have the experience of coffee retailing. These all questions started making ripples in my mind and compelled me to explore into the world of Superbrand called Starbucks.

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  • Dual class shares – is India ready for it?

    Macroeconomics and Finance in Emerging Market Economies

    Market evidence suggest that a class of common stock with superior voting rights trades at systematically higher prices than an identical class of stock with inferior voting rights, as control over the firm grants the promoters some opportunity to receive a higher payoff. Differential voting rights class of shares may attract a certain class of investors who are only interested in the economic benefits of a company. It assists management in deterring potential rivals from winning a control and…

    Market evidence suggest that a class of common stock with superior voting rights trades at systematically higher prices than an identical class of stock with inferior voting rights, as control over the firm grants the promoters some opportunity to receive a higher payoff. Differential voting rights class of shares may attract a certain class of investors who are only interested in the economic benefits of a company. It assists management in deterring potential rivals from winning a control and allows raising fresh capital for growth without giving up control. The value of controlling a firm derives from the fact that you believe that you or someone else would operate the firm differently from the way it is being run currently. Differential voting rights shares in different countries have indicated that voting rights are generally worth between 10% and 20% of the value of common stock. This article intends to create awareness about differential voting rights shares, to study the international as well as domestic experience and tries to examine the various factors that affect differential voting rights share prices.

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Languages

  • English

    Full professional proficiency

Organizations

  • Indian Association of Investment Professionals

    Chair - Technology Comittee

    - Present

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