Andrew Lo

Andrew Lo is a professor at MIT Sloan School of Management who developed the Adaptive Markets Hypothesis (AMH) — arguing that markets evolve based on the ecology of competing investors rather than being statically efficient or inefficient. He has contributed extensively to research on hedge fund risk, the relationship between neuroscience and financial decision-making, algorithmic trading, and market microstructure. Lo also wrote "Adaptive Markets" (2017) making the AMH accessible to broader audiences. His interdisciplinary approach bridges finance with biology and psychology. Lo has also been a pioneer in applying concepts from evolutionary biology and behavioral neuroscience to explain why market bubbles and crashes recur, and his work on the systemic risk of the hedge fund industry has influenced regulatory thinking about macro-prudential oversight.