AgPa #61: Minivans versus Sports Cars
Sensation Seeking and Hedge Funds (2018)
Stephen Brown, Yan Lu, Sugata Ray, Melvyn Teo
The Journal of Finance 73(6), 2871-2914, URL/SSRN
Tell me about the car you drive and I tell you who you are. In the hope of not offending the car enthusiasts too much, this week’s AGNOSTIC Paper relates the performance and characteristics of hedge fund managers to the type of car they drive. As announced in last week’s article, this is a funny example for the important soft factors that investors should consider when selecting an asset manager.
- Sports car drivers take more risk and deliver lower performance
- Funds of sports car drivers come with more operational risk
- Sports-car-driving investors want sports-car-driving fund managers