Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Skin in the Game Matters for Fund Directors Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, April 4, 2005

Skin in the Game Matters for Fund Directors

Reported by Sean Hanna, Editor in Chief

A study that looks at whether board structure effects fund performance hit the radar screen of personal fund columnist Chuck Jaffe over the weekend. The study -- Does Skin in the Game Matter -- was authored by four college professors and claims to show that funds in which the directors are also shareholders outperform those in which they are not.

Jaffe says that the fund industry also claims that the study shows that there is little difference between the performance of funds run by independent directors and insider directors.

The study found that the risk-adjusted performance of funds in which directors held shares topped those in which they did not by as much as 4 percent annually. Whether the director invested in a fund on which he or she was a trustee or just another fund in the same complex did not appear to make a difference.

That performance gain held whether or not the director who held the shares was independent or an insider.

"One thing that comes out quite strongly is that non-independent directors - the guys affiliated with the management company - can have a really strong, positive effect on performance, so long as their interests are aligned with shareholders," study author David Weinbaum told Jaffe. "But we found that all directors can have a positive impact; they tend to have the biggest impact when they are shareholders themselves." 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use