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Chart of the Day: Managers’ Attractiveness and Fund Performance

Crews Bank & Trust Wealth Management Services Nov 7, 2023

Contents

 Today’s Chart of the Day comes from an academic paper by Chengyu Bai with the Shanghai Jiao Tong University. It shows that funds with “attractive” managers underperform funds with “unattractive” managers by over 2% per year.The research also shows that more money went to managers who were attractive when photos were accessible to investors. The researchers used artificial intelligence to quantify facial attractiveness and explained the underperformance is likely due to inadequate abilities, lack of effort, and overconfidence.

As a money manager, one of our services is to recognize and overcome this and about 15 other biases that harm decision making. As one of my colleagues once said, “We try to be bias against the biases.”
Chart of the Day

About the Author

Crews Bank & Trust Wealth Management Services
Crews Bank & Trust Wealth Management Services

Experienced professionals from our wealth management services team can help you achieve a bright financial future through investment strategies tailored to you. We’ll show you all of the options available and help you choose the ones best suited to you. We’ll provide high-quality, personal service as we work toward your goals together. Our Portfolio Managers do not receive commissions on trades; our recommendations of investments are based solely on your best interests.

Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.

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