We talked yesterday about the seemingly random nature of hedge funds, which have a better chance stinking it up following a good year than putting together two consecutive successful campaigns. Now, we may have a reason. Investors are apparently funneling all their assets to hotties and beefcakes.
A new study from Tel Aviv University suggests that investors are more likely to give their money to attractive hedge fund managers than their less visually appealing counterparts, which, on the whole, are more successful in the markets.
The study used dozens of publicly available photographs of hedge fund managers and had respondents assess their personal characteristics, including age and attractiveness. They then came up with a “trustworthiness” rating based solely on the photographs.
Researchers found that the personal appearance of the hedge fund manager played a “dominant” role in their trustworthy rating. Moreover, the managers who were deemed trustworthy, based mainly on how attractive they were, shouldn’t necessarily be trusted, at least when compared to those who looked "undependable.”
"On the contrary, we found that the 'trustworthy' managers tended to make less money for investors and more money for themselves by leveraging the way they looked and how they presented themselves,” said lead author Dr. Roy Zuckerman. “'Untrustworthy' execs were found to charge lower fees and generate more income for investors and less for themselves."
So, the moral of the story is if you are attractive, launch a hedge fund. And if you have money to invest, find the ugliest hedge fund manager on the block and give them every dime. (But seriously: don’t do either of those things).
Seven Ways Consulting Firms Assess Candidates (eFinancialCareers)
When a consulting interview is completed, the hiring manager will ask themselves several questions to assess the candidate’s ability to do the job. Knowing what questions consulting firms will ask themselves – and in what order of importance – is critical.
Career Lessons From the ‘Mooch’ (eFinancialCareers)
Meet the man who was fired by Goldman Sachs and re-hired a month later.
Morgan Whiffs Too (Bloomberg)
Like other banks before it, Morgan Stanley missed expectations on Monday due mainly to a trading slump that hit all of Wall Street. But, as promised, Morgan Stanley increased compensation within its wealth management division, despite the fact that it hurt its pretax profit margin. Plus, bankers are getting paid more up front!
NYSE Renovation Complete (WSJ)
The New York Stock Exchange unveiled their new digs on Tuesday. The modern-looking room has 352 work stations, 404 personal computers and 1452 screens. Check out the pics.
50,000 Job Cuts (NY Post)
Wall Street banks combined to cut roughly 50,000 jobs last year, with Bank of America leading the charge with about 20,000 redundancies. The good news, if you can call it that, is that most cuts were in mortgage departments that beefed up their staff during the refinancing boom that has since ended. But still, that’s a lot of jobs.
‘Do-Or-Die’ Year at Citi (Crain’s)
Citigroup has failed the Federal Reserve’s stress test two of the last three years, making 2015 a “do-or-die” year, according to Wall Street analyst Mike Mayo. “Either Citi gets it done or it’s time to more aggressively break up the company.” You’d have to wonder about the future of CEO Michael Corbat and other top management, too.
Pulling the Daddy Card (NY Post)
Uttering the phrase “do you know who my father is?” should be punishable by law. The latest to use it was the son of Wall Street titan Mario Gabelli as he was thrown out of a posh New York City restaurant. Fox Business reporter Charlie Gasparino happened to be there and tried to lend a hand, telling Gabelli’s son that he was “embarrassing his father.”
Buzz Around the Office
Payment Due on Delivery (HuffPo)
A five-year old boy was sent a $24 invoice after no-showing a friend’s birthday party. Seriously. The birthday boy’s mother is now threatening to take the parents to small claims court.
Quote of the Day: “When you are in [those] social settings, often people assume that you are someone’s wife.” – Barri Rafferty, CEO of Ketchum North America, on what it’s like to be a woman at the World Economic Forum in Davos