funds with facial unattractive managers outperform funds with attractive managers by over 2% per annum
According to Nassim Taleb if you want to choose a doctor you should always choose the ugly one, that makes sense because they had to overcome a lot to reach where they are now. Attractive people benefit from help all the way. Now we know that if a fund manager is "less attractive" he also had to overcome a lot. The world is fair, the very poor have a will to win that the rich kids don't have and that is a big equalizer. Now we know that the unattractive do better than the.... Everything is well.
In this paper, we study the relationship between stock fund managers’ facial attractiveness and fund outcomes. Utilizing the state-of-art deep learning technique to quantify facial attractiveness, we find that funds with facial unattractive managers outperform funds with attractive managers by over 2% per annum. We next show that good-looking managers attract significant higher fund flow especially if the funds are available on Fintech platforms where their photos are accessible to investors. Good-looking managers also have greater chance of promotion and tend to move to small firms. The potential explanations for their underperformance include inadequate ability, insufficient effort, overconfidence and inefficient site visits.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4322134
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