Professor of Financial Economics
Director of the Master of Finance (MFin) Programme
BA (IBMEC Business School), MSc (Fundação Getulio Vargas (EPGE)), PhD (London Business School)
My research interests include security lending markets, short selling, liquidity risk, and how differences of beliefs affect trading volume. My consulting experience is centred on valuation, including work as an expert to international arbitration courts, and the analysis of pharmaceutical firms’ value.
I’m a member of the Finance subject group at Cambridge Judge Business School, which focuses on the investment and financial decisions of firms and institutions.
News and insights
CERF Fellow Oğuzhan Karakaş, and research collaborators Pedro Saffi (a former CERF fellow) and Mehrshad Motahari (a former CERF Research Associate), analyse whether the short sellers can anticipate negative ESG incidences of firms, and make money from the negative price reactions to the news announcement of such incidences.
Study co-authored by Pedro Saffi of Cambridge Judge Business School wins Best Paper in Corporate Finance Award at the Society for Financial Studies Asia-Pacific conference.
MFin Director, Professor Pedro Saffi, travelled to Mexico City in August. During his visit he had the chance to meet and connect with some of our Mexican alumni and new students.
Market Watch | 24 February 2023
PhD candidate Elias Ohneberg and Pedro Saffi, Professor of Financial Economics and Director of the Master of Finance (MFin) Programme at Cambridge Judge Business School, are featured in this article about how much impact employee happiness has on investment returns.
A study on hedge fund activism co-authored by Dr Pedro Saffi, Reader in Financial Economics at Cambridge Judge Business School, featured in the article. The study found that “activist investors are more likely to start new campaigns in companies that have already attracted the interest of large short sellers.” Dr Saffi commented: “Often, it’s much more difficult to be a short seller than an activist. The typical position of a hedge fund activist tends to be larger than the larger short sellers. Often, activists create a kind of coalition, called wolfpacks, to try to implement changes with management.”
Dr Pedro Saffi, Reader in Financial Economics and Director of the Master of Finance at Cambridge Judge Business School, recently appeared on BBC commenting on US congressional hearings on GameStock share trading. Dr Saffi went on to say that lots of professional investors are going to start paying much more attention than they do at the moment in the market sentiment that is coming from those small investors on Reddit. “People were very surprised by the fact that the hedge funds and other large investors were kind of beaten up by the small traders that were following that Reddit forum.”