Looks can be deceiving when investing in hedge funds, a new academic study found. According to a new study by Dr. Roy Zuckerman of Tel Aviv University’s Faculty of Management, hedge fund managers who were deemed by a study group to appear “trustworthy” in photographs actually took more money for themselves in terms of fees and generated lower performance than the “untrustworthy” looking hedge fund managers. Trustworthy hedge fund managers successful at gathering assets While the “trustworthy” hedge fund managers were successful at gathering assets, as well as retaining assets during drawdowns, it was the more “undependable” looking counterparts that delivered…
Study Finds Looks Can Be Deceiving (Literally) When It Comes To Hedge Fund Managers
Mark Melin
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.