The True Colors of Money: Racial Representation and Asset Management

• 成果类型: Article; Early Access
• 署名作者: Han, Lina; Huang, Xing; Kadan, Ohad; Wu, Jimmy
• 署名单位: University of Massachusetts System; University of Massachusetts Amherst; Washington University (WUSTL); Cornell University; Arizona State University; Arizona State University-Tempe; University of Iowa
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454; 1465-7368
• DOI: 10.1093/rfs/hhag038
• 发表日期: 2026-06-15
• 关键词: G11; G14; G23; D82; CULTURAL PROXIMITY; Mutual funds; risk-taking; thinking; returns; MARKET

摘要

We examine the role of race and ethnicity in the mutual fund context at two distinct levels. At the fund manager level, we document a co-racial tilt-funds managed by minority-dominant (White-dominant) teams allocate larger portfolio weights to minority-led (White-led) firms. This tilt is not associated with superior performance. It diminishes as fund managers gain experience, suggesting the presence of inaccurate statistical discrimination. At the investor level, we find that minority-dominant funds are penalized similarly to White-dominant funds for poor performance but are not rewarded as much for superior performance. Overall, our results uncover race-related investment choices at both levels.