33 Pages Posted: 19 Jul 2016 Last revised: 15 Feb 2017
Date Written: February 11, 2017
We assembled a comprehensive dataset of equity hedge funds performance and matched the managers' political affiliation by their partisan contributions. We document higher returns of funds managed by Democrats for 10 subsequent months --- from December 2008 to September 2009. We conjecture that the conjunction of the financial crisis, Obama's election, and politically polarized interpretation of the US central bank policy during that period had an asymmetric impact on hedge fund managers' perception. In other periods, when the political discourse did not involve central bank policy, there was no statistically significant difference in fund managers’ performance depending on their political beliefs.
Keywords: Political Biases, Money Managers Performance
JEL Classification: D72, G11, G14
Suggested Citation: Suggested Citation
Moszoro, Marian and Bykhovsky, Michael, Political Cognitive Biases Effects on Fund Managers' Performance (February 11, 2017). Available at SSRN: https://ssrn.com/abstract=2811350 or http://dx.doi.org/10.2139/ssrn.2811350