This week, The Journal of Portfolio Management announced the recipients of the 16th Annual Bernstein Fabozzi/Jacobs Levy Awards recognizing the top papers from its 2014 publications. The awards are selected on the basis of voting by journal subscribers. Compass Lexecon Expert Professor Bradford Cornell received an Outstanding Article prize for the paper he co-authored with Aswath Damodaran (Professor of Finance at New York University Stern School of Business) entitled “Tesla: Anatomy of a Run-Up.”
The article “presents a detailed anatomy of the nearly seven-fold run-up in the price of Tesla stock between March 22, 2013 and February 26, 2014, and attempts to determine the role played by investor sentiment.” Professors Cornell and Damodaran conclude that “the run-up cannot be explained as a rational reaction to fundamental information” and “at the end of the run-up, the stock was overvalued by approximately 150.” According to the authors, their case study provides support for the idea that “price and rational value can diverge significantly for prolonged periods of time.”Professors Cornell and Damodaran’s award-winning article was published in the Fall 2014 issue of The Journal of Portfolio Management.
This is the second time Professor Cornell has won a Bernstein Fabozzi/Jacobs Levy Outstanding Article Award. He previously won the award in 2010 for his paper “Luck, Skill, and Investment Performance,” which appeared in the Winter 2009 issue of The Journal of Portfolio Management.