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Scott Stewart

Research Associate Professor/EIR/Faculty Director, MSIM Program
Phone: (617)353-2353
Fax: (617)353-6667
Office: 518E
By Appointment
Address: Boston University Questrom School of Business
595 Commonwealth Avenue
Boston, MA 02215


Cornell University
Ph.D., Finance1985

Cornell University
MBA, Finance1983

St. Lawrence University
B.S., Economics and Mathematics1980


Research Interests

  • Behavior of Institutional Investors

  • Application of Technology to Financial Decision Making

  • Portfolio Management Techniques

  • Security Analysis and Stock Valuation

Selected Publications



"Why Do Institutional Plan Sponsors Hire and Fire Their Investment Managers? " Journal of Business and Economic Studies 13 (1) (Spring 2007)88-115
This study draws inferences about investment decisions by plan sponsors who oversee over $6 trillion in institutional investment assets by examining asset and account flows for actively-managed U.S. equity products. Analysis reveals an expected role for benchmarks – primarily the S&P500 – and a curious role for total returns over short and long-term horizons in asset flow allocations. Sponsors punish for one-year losses, and screen on consistency, but not magnitude, of positive or negative active return over time. Style benchmarks are more prominent in decisions to move accounts, which are found to involve more criteria, possibly reflecting a higher hurdle decision requirement.
"Is Consistency of Performance a Good Measure of Manager Skill?"  Journal of Portfolio Management (Spring 1998)
"Biases in Performance Measurement During Contributions" Financial Review (May 1987)
"White Knights and Takeover Bids" Financial Analysts Journal (January 1985)


"Absence of Value: an Analysis of Investment Allocation Decisions by Institutional Plan Sponsors" Financial Analysts Journal (2009)
"Quantitative Methods of Investing Internationally" International Investing for Pension Professionals, Institute for Fiduciary Education X (2) (1990)


RUNNING MONEY: Professional Portfolio Management Chicago:  McGraw-Hill, 2010

Boston University Questrom School of Business’s Scott Stewart, Research Associate Professor and Faculty Director of the MSIM Program, has co-authored a new textbook on investment strategy, RUNNING MONEY: Professional Portfolio Management. The work delves into asset allocation, security selection, and the investment business at large and draws on his experience as an award-winning fund manager at Fidelity and State Street for over 16 years prior to joining BU in 2001. Running Money exposes students to what they need to “run money” professionally by developing advanced portfolio management tools and illustrating their practice. This new first edition text is ideal particularly for an elective course in Portfolio Management, providing advanced instruction in setting broad asset mixes, managing individual asset class portfolios, and making effective investment business decisions. The book is published by McGraw Hill and two chapters have been adopted for use by the CFA Institute in its continuing education program. Read more about the book at

See Book



"MOBILE PDA COMMUNICATION OF FINANCIAL ANALYSIS: LESSONS FOR LEARNING"  In IADIS International Conference on Mobile Learning International Association for Development of the Information Society,  2006

This research study investigates the communicative capabilities enabled by web-based support and wireless PDA communication of financial analysis. We report on an experiment utilizing a live student-managed investment fund mirroring the investment industry. Survey data inform findings on the system’s effectiveness for improving learning and student satisfaction. Statistical results indicate that the simple presence of web-enabled pocket-sized devices do not improve the learning process. However, learning is enhanced if users are satisfied with the devices.


"Is Consistency of Performance a Good Measure of Manager Skill?"  In Enhanced Index Strategies Institutional Investor,  1999


"The Advantage of High Yielding Equities for Taxable Corporate Investors"  In New Directions in Finance Edited by D. Ghosh and S. Khaksari Routledge Publishing,  1995


"Constant Horizon Portfolio Insurance"  In Portfolio Insurance: A Guide to Dynamic Hedging Edited by D. Luskin John Wiley & Sons,  1988


Working Papers

"Equity Valuation Metrics and Drivers"
Each year, thousands of research analysts strive to apply valuation techniques when preparing their investment recommendations. Trillions of dollars of assets are managed by over one thousand investment managers in the U.S., with a majority utilizing traditional fundamental analysis. Company management seeks to maximize the value of their shares, in part determined by these analysts. This study identifies metrics for different market sectors to aid equity analysts in valuing stocks within their industry and inform company management of key variables for financial management. A survey of equity research reports by fundamental analysts is conducted to identify potential valuation multiples (P/E, P/S, etc) and drivers to those multiples (Earnings Growth, Profitability Margins, etc). Four periods of annual financial data are collected and utilized to identify very strong statistical relationships between multiples and drivers for each market sector, suggesting relevant measures and levels for analysts to use in their work. A second test is conducted, without significant results on the forecasting power of historical measures, indicating effective forward-looking techniques are required to consistently deliver excess returns. This information provides both aspiring and experienced equity analysts a valuable guide for applying multiples valuation techniques.


Professional Activities

  • 1980-1985, Research Assistant, Cornell University

Nonacademic Positions

  • 1987-2001, Fund Manager, Group Leader, Sr. Advisor to Equity Research, Fidelity Investments
  • 1985-1987, Assistant Vice President and Portfolio Manager, State Street Bank & Trust Co. (now Global Advisors)

Board Memberships

  • Member of Board of Directors Freedom House Boston MA (1994-1999)
  • Board of Advisors Boston University Masters Program in Investments (1998-2002)


  • Board of Directors, KiCap Management Funds, 2002-2005
  • Research Director, Financial Markets Institute, University of Iowa (1995-2000)

Honors & Awards

  • Micropal Awards: First Place, Three year North American Equity Category, Dec., 1993. Wall Street Journal: Mutual Fund Scorecard/Capital Appreciation, one of "Top 15 Performers", 12 month period ending May 1995. Australian Financial Review: "Best return for 1995" of any unit trust available in Australia. Barron's: annual Top 100 Fund Managers, July, 1996. Barron's: annual Top 100 Fund Managers, July, 1997. Barron's: annual Top 5 Aggressive Growth Funds, July, 1997. Barron's: annual Top 5 Asset Allocation Funds, July, 2000. Wall Street Journal: Mutual Fund Scorecard/Equity Income, one of "Top 15 Performers", 12 month periods ending May, 1999 and May, 2000.
  • Distinguished Paper for the 2006 Academy of Finance
  • Best Paper Award for the 2004 NBEA Conference