We identify strong and robust evidence of strategic performance allocation in the institutional money management industry, directed toward strong recent performers. The extent of strategic performance allocation varies with the product's client power. Strategic performance allocation is...

Empirical evidence shows that the pricing kernel, or stochastic discount factor (SDF), is not always downward sloping when estimated using Samp;P 500 data. On the other hand, we show that individual stock SDFs are in general downward sloping. We show that a simple jump diffusion returns model...