Study Finds Looks Can Be Deceiving (Literally) When It Comes To Hedge Fund Managers

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 enhanced performance relative to their "trustworthy" colleagues. The research, conducted in collaboration with Dr. Ankur Pareek of Rutgers University, was recently...