Jason Hsu

Adjunct Professor of Finance

Phone: (310) 825-2508



Jason Hsu joined the faculty of UCLA Anderson School in the fall of 2008. His areas of research include international finance, the equity premium puzzle, business cycles, and optimal portfolio allocations. He is co-author of The Fundamental Index: A Better Way to Invest (Wiley 2008), which is available in English, Chinese and Japanese, and a contributing author in four handbooks on investment and risk modeling.  Jason has also authored more than 20 academic and practitioner journal articles.

Dr. Hsu has previously taught financial management and international finance as a visiting professor at UC Irvine, Merage School of Business, the College of Commerce at Taiwan National Chengchi University (NCCU), and Shanghai University of Finance and Economics.

Away from his academic life, Dr. Hsu is the Chief Investment Officer and Managing Director of Research and Investment Management at Research Affiliates. He manages all investment activities associated with the firm’s sub-advisory and hedge fund businesses. In addition he oversees research on the firm’s asset allocation models and equity strategies.

Jason was selected as one of the 20 Rising Stars of Hedge Fund by Institutional Investors and won the William Sharpe Award for Best Index Research for his work with Rob Arnott on Fundamental Index methodology.


Ph.D. Finance, 2004, UCLA Anderson School of Management
M.Sc. Stanford University
B.Sc. summa cum laude California Institute of Technology


International Finance, Equity Premium Puzzle, Business Cycles, Optimal Portfolio Allocations


In May 2008, Dr. Hsu received the Institutional Investor’s Rising Star of Hedge Funds award as an up-and-coming professional who will have an impact on the hedge fund industry in the years to come.

In December of 2005, Dr. Hsu and Rob Arnott received the William F. Sharpe Award for Best New Research Paper on Indexing at the Superbowl of Indexing.

Representative Publications and Working Papers

1. Fundamental Indexation, with Robert D. Arnott and Phillip Moore, 2005 March/April, Financial Analyst Journal.

2. Re-examining Fundamental Indexation with Carmen Campollo, 2006, Journal of Indexing.

3. Cap-Weighted Portfolios Are Sub-optimal Portfolios, 2006 (Quarter 3), Journal of Investment Management.

4. Noise, CAPM and the Size and Value Effect, with Robert D. Arnott, 2008 (Quarter 1), Journal of Investment Management.

5. The Fundamental Index: A Better Way to Invest, with Robert D. Arnott and John West, 2008 Wiley. [This book has been translated for publications in three other languages].

6. A Model of R&D Valuation and the Design of Research Incentives, with Eduardo Schwartz, 2008 (December, Vol 43, No. 3), Insurance: Mathematics and Economics.

7. Risk-managing the uncertainty in VaR model parameters, with Vitali Kalesnik, 2009, in The VAR Implementation Handbook (G. Gregoriou, Editor), McGraw-Hill.8. Cyclicality in stock market volatility and optimal portfolio allocation, with Feifei Li, 2009, in Stock Market Volatility (G. Gregoriou, Editor), Chapman & Hall.

9. A Structural Model for Default Risk, with Pedro Santa-Clara and Jesus Saa-Requejo, 2010, Journal of Fixed Income.

10. Applying Valuation-Indifferent Indexing to Fixed Income, with Robert D. Arnott, Feifei Li and Shane Shepherd, 2010, Journal of Portfolio Management.

11. Shadow Banks and the Financial Crisis of 2007-2008, with Max Moroz, in Banking Crisis, (G. Gregoriou, Editor), Chapman-Hall/Taylor and Francis.

12. Model Risk for Market Risk Modeling, with Vitali Kalesnik and Shane Shepherd, in Model Risk Evaluation Handbook: Rethinking Financial Risk Management Methodologies in the Global Capital Markets (G. Gregorious, C. Hoppe and S. Wehn Editor), McGraw-Hill.

13. Does Noise Create the Size and Value Effect, with Robert D. Arnott, Jun Liu and Harry Markowitz, 2008 (UCLA/UCSD Working Paper; 2008 AFA Conference Selection).

14. What Drives Equity Market Non-participation? 2012, North American Journal of Economics and Finance

15. Merger Arbitrage Profitability in China, with Shane Shepherd and Jason C. Tuan, (2007 International Conference on Management Science and Engineering, Conference Selection).

16. Performance Attribution: Measuring Dynamic Allocation Skill, with Vitali Kalesnik and Brett Myers, 2010, Financial Analyst Journal.

17. Does Valuation-Indifferent Indexing Work for the Real Estate Market?, with Vitali Kalesnik and Feifei Li, 2010, Journal of Investing

18. An Examination of Traditional Style Indexes, with Vitali Kalesnik and Himanshu Surti, 2010, Journal of Index Investing

19. A Survey of Alternative Equity Index Strategies, Tzee-man Chow, Jason C. Hsu, Vitali Kalesnik, and Bryce Little, 2011, Financial Analyst Journal.