What Do Mutual Fund Managers’ Private Portfolios Tell Us about Their Skills?

New research by PhD-student Markus Ibert show that fund managers that invest their personal wealth in the very same funds they manage consistently outperform. The managers who invest a lot in their own funds do particularly well. Fund managers, contrary to fund investors, know about their ability – or more often lack thereof – and invest their personal wealth accordingly.

The paper is available here.