Study Finds "Financial Experts" Do Not Perform Better Than Non-Experts

HFA Padded
Mark Melin
Published on
Updated on
Financial Experts

Do “financial experts” perform better at stock portfolio selection and management than non-experts coming from a similar demographic and educational background? No, is the result of a study from Notre Dame and Michigan State researchers. Sweden’s financial experts did not outperform individual investors Researchers found that a group of mutual fund managers in Sweden – the “financial experts” – did not outperform a group of individual investors, did not diversify their risk better and did not exhibit a lower level of behavioral bias. The mutual fund managers did outperform when the had an informational advantage over the non-financial experts, such…

This content is exclusively for paying members of Hedge Fund Alpha

Log In

Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha

Don’t have an account?

Subscribe now and get 7 days free!

HFA Padded

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.