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This dovetails to some degree with recent studies showing female asset managers both are less risk-tolerant and provide better overall returns than male asset m
by bfe 15y ago
This dovetails to some degree with recent studies showing female asset managers both are less risk-tolerant and provide better overall returns than male asset managers, on average.
- yummyfajitas 15y agoDo you have a citation for this? If true, it's counterintuitive - one would expect the risk-tolerant investors to have higher returns.
- amirmc 15y agoI vaguely remember what the GP is talking about. IIRC it basically came down to women being more likely to 'let go' and not pour more good money after bad. I don't remember it being about 'risk-tolerance' specifically. More about women having less 'ego' in the game. Sorry I can't find the links.
- gwern 15y agoThe way I remember it, it was simply that men traded more and so the fees (combined with some bad choices) damaged their returns: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.145.8230&rep=rep1&type=pdf http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.145...
- yummyfajitas 15y agoThis paper is based on retail investors at a discount brokerage, not asset managers.
- gwern 15y agoWho we would expect to be immune to the issues of their gender... why? I bet if you look, there are similar results for managers, that those who trade more damage their returns.
- yummyfajitas 15y agoBecause the asset managers who are not immune to the problems of retail investors get fired very quickly. Just as it is hard to generalize from your average facebook user to programmers, it is hard to generalize from retail investors to professional traders.