The highly publicized departures of well-known mutual fund managers like Bill Gross at PIMCO highlight the fixation the media and investors have on the importance of the leader at the helm of a fund. But in this succinct, accessible study, Morningstar researchers Madison Sargis and Kai Chang find that the success of a fund does not depend on a single individual but rather on the team-driven approach that now dominates the industry. getAbstract recommends this eye-opening, useful report to investors and financial professionals.
In this summary, you will learn
- How investors react to news of a high-profile management change in a fund,
- Why a leader’s departure has no effect on a fund’s returns and
- How the team approach to investing influences fund performance.
About the Authors
Kai Chang is the director of quantitative research at Morningstar, where Madison Sargis is a quantitative analyst.