Diversification as a Service
September 2026Even without stock-picking skill, specialized funds can earn positive alpha after fees by selling diversification beyond a cheap market fund.
Stanislav (Stas) Sokolinski
Assistant Professor of Finance
Broad College of Business, Michigan State University
I study how asset management shapes asset prices, capital allocation, and investor outcomes.
- Research
- Asset Management · Asset Pricing
- Education
- Ph.D. in Economics, Harvard University
Working Papers
When Innovation Becomes Systematic: From Venture Capital Experimentation to Public-Market Risk
July 2026When venture capital spreads across distinct but connected technologies, related public stocks tend to move together more strongly over the following year.
Presentations: 3rd Annual Boca Finance and Real Estate Conference (2026)
Erasing Alpha
February 2026Even very large capital reallocations barely shrink alpha: price impact translates only weakly into expected returns, while overlapping ownership mostly shifts alpha across strategies.
Presentations: AFA Annual Conference (2027) · NFA Annual Conference (2026) · Third UIC Finance Conference · 11th University of Connecticut Finance Conference · FIRS Conference (2026) · FSU Truist Beach Conference (2026) · 13th HEC–McGill Winter Finance Workshop · 35th Conference on Financial Economics and Accounting · 12th SAFE Asset Pricing Workshop · New Perspectives and New Products in Asset Management (2025)
Does Sustainable Investing Weaken Stock Reactions to Cash Flow News?
April 2026Stocks with high sustainable ownership respond only half as much to the same earnings news, implying a 1–3 percentage point lower discount rate than comparable stocks.
Presentations: SFS Cavalcade North America Conference (2026) · Quadrant Behavioral Finance Conference (2025) · Financial Management Association Annual Conference (2025) · GRASFI Annual Conference (2025) · 4th Spring Finance Workshop · 12th HEC–McGill Winter Finance Workshop · Yale Initiative on Sustainable Finance Annual Symposium (2024) · University of Munster · NEOMA Conference on Sustainable Finance (2024) · Collegio Carlo Alberto · 11th Annual Conference on Financial Market Regulation · Annual Meeting of the Swiss Society for Financial Market Research (2024)
Publications
Which Investors Drive Anomaly Returns and How?
Journal of Financial Economics · 2026
Anomaly returns are mostly a small-investor story: fundamentals-based trading by smaller investors drives their variation, while large institutions matter only in select cases.
Winning Teams or Winning Pay? The Impact of Team Allocation on Fund Manager Compensation and Careers
Journal of Financial and Quantitative Analysis · 2026
Joining top-quality teams initially lowers manager pay but accelerates skill development and future compensation, especially for top performers and less-experienced managers.
Robo Advice and Access to Wealth Management
Journal of Financial Economics · 2024
Robo advice gives less-wealthy investors access to sophisticated asset management, expanding participation and improving investor welfare.
Strategic Borrowing from Passive Investors
Review of Finance · 2024
Passive investing helps alleviate short-sale constraints by reducing the risks associated with stock borrowing.
Regulating Commission-Based Financial Advice: Evidence from a Natural Experiment
Journal of Financial and Quantitative Analysis · 2023
Limits on commissions paid to financial advisers reduce the prices of financial products and stimulate investment.
Paying for Beta: Leverage Demand and Asset Management Fees
Journal of Financial Economics · 2022
Mutual fund investors pay extra for embedded leverage, helping explain why fees can exceed risk-adjusted returns.
The Globalization of Angel Investments: Evidence Across Countries
Journal of Financial Economics · 2018
Across 21 countries, angel funding has a positive impact on firm growth, performance, survival, and follow-on fundraising.