Institutional Investor: Broken homes produce more cautious fund managers

 

Traumatic experiences in childhood can affect the behaviour of professional investors, says a study co-authored by Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School. The study is based on data on more than 500 fund managers who ran US active equity funds between 1980 and 2017. “There is a lot of medical literature that says that there is a part of your brain that is affected when you experience trauma growing up,” said Professor Rau.

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