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Author(s)

Karl Schmedders

Peter Eso

Peter Klibanoff

Graeme Hunter

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.

Date Published: 01/01/2007
Discipline: Finance;Statistical Methods
Key Concepts: Analyzing Mutual Fund Performance, Linear Regression Analysis, Two Sample Statistics, Survivorship Bias
Citations: Schmedders, Karl, Peter Eso, Peter Klibanoff, Graeme Hunter. Pedigree vs. Grit: Predicting Mutual Fund Manager Performance. 5-407-755 (KEL396).