Should investors care about a fund manager’s relationship status? What kind of car they drive? Ask them if they’ve won any poker games lately?
Research points to yes.
A recent outpouring of academic papers links the investment performance of professional fund managers to their characteristics as individuals — how they grew up, their personality traits, even their testosterone levels. Studies have explored the impact of everything from where investors went to school to whether they lost a parent in childhood.
The studies have attracted widespread attention from financial and mainstream media outlets — Institutional Investor included. You’ve probably seen the headlines: “A Hedge Fund Manager Who Drives a Ferrari Will Probably Underperform.” “‘Psychopath’ Hedge Fund Managers Make Less Money Than Nice Guys.” “Why ‘Alpha Males’ Make Bad Hedge Fund Managers.” The list goes on.
More here – Institutional Investor