Case Detail

Case Summary

Pedigree vs. Grit: Predicting Mutual Fund Manager Performance

Case Number: 5-407-755, Year Published: 2007

HBS Number: KEL396

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Authors: Karl Schmedders; Peter Eso; Graeme Hunter

Key Concepts

Analyzing Mutual Fund Performance, Linear Regression Analysis, Two Sample Statistics, Survivorship Bias

Abstract

An asset management company must replace the manager of its two signature mutual funds, who is about to retire. Two candidates have been short-listed. The management team is divided and cannot decide which of the two candidates would make the better mutual fund manager. The retiring manager presents a linear regression model to examine success factors of mutual fund managers. This linear regression is the starting point for the subsequent analysis.

Learning Objectives

Application of linear regression analysis to analyze the performance of mutual fund managers.

Number of Pages: 6

Extended Case Information

Teaching Areas: Finance, Statistical Methods

Teaching Note Available: Yes

Geographic: Chicago, Illinois, United States

Industry: Financial Services

Organization Name: AMBTPM

Organization Size: Small

Decision Maker Gender: Male

Year of Case: 2007