Friday, January 11, 2008

eating your own cooking

According to a study recently published in The Journal of Financial Economics, there is a direct correlation between the amount of money a mutual fund manager has invested in his fund and its performance. No huge surprise there, particularly if you've spent any time reading about the importance of "eating your own cooking."

But wait, it gets better. The study cites that the amount a manager invests in his fund is the most accurate indicator of how well the fund will perform over time.

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