Fund Manager Characteristics and Performance
This study establishes a three-tier framework to evaluate how fund manager characteristics systematically affect their performance. The framework includes three ties of performance elements: 1) comprehensive performance, 2) return and risk, and 3) fund manager abilities. We connect different tiers by performance decomposition. Our evidence indicates that various characteristics take different channels to affect return, risk, and fund manager abilities, which in turn affect comprehensive performance. In particular, having a master’s degree in Business Administration or Chartered Financial Analyst qualification is significantly associated with a fund manager’s better stock picking ability, higher excess fund returns, and better comprehensive fund performance.
