Using data from individual Census records on the wealth of managers’ \nparents, we find that mutual fund managers from poor families outperform\n managers from rich families. We argue that managers born poor face \nhigher entry barriers into asset management. Consistent with this view, \nmanagers born poor are promoted only if they outperform, while those \nborn rich are more likely to be promoted for reasons unrelated to \nperformance. Overall, we establish a first link between fund managers’ \nfamily descent and their ability to create value.
Published Paper, 2018
The Review of Financial Studies, 31(10)
Page(s): 3756-3820
Abstract