Are You Smarter than a CFA’er?

Abstract:     
Several studies have examined whether a manager having an MBA or CFA leads to superior portfolio performance. However, these studies have yielded mixed conclusions. A possible reason is that most have considered only MBA or CFA alone, and most have not controlled for managers’ style targets. We examine MBAs and CFAs together, controlling for market conditions and style targets. We find that the CFAs do add value, but even more significantly (especially in light of events in recent months) – CFAs reduce and MBAs increase Tracking Error.

Keywords: CFA, MBA, portfolio managment

Working Paper Series