The Career Paths of Mutual Fund Managers: The Role of Merit
Document Type
Article
Keywords
management;investment products;income trusts;investments;capitalists & financiers;mutual funds
Identifier Data
10.2469/faj.v70.n4.3
Publisher
CFA Institute
Rights Management
Copyright of Financial Analysts Journal is the property of CFA Institute and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Abstract
This study provides evidence that merit—specifically, performance relative to peers measured on a style-adjusted basis—plays a significant role in the length of a mutual fund manager’s career. Managers who underperform their peers are more likely to lose their jobs. However, surviving managers of any tenure—even those who manage their funds for 10 or more years—generally do not outperform the market or their style benchmarks and do not display consistently superior performance.
Comments
Published by the CFA Institute in Financial Analysts Journal, volume 70 issue 4, 2014. Bryant users may access this article here.