Beyond the Ticker: Female Brands and Fund Manager Investment Decisions

Abstract

Using machine learning and image recognition techniques on over 300,000 images, we classify 138 top brands based on their level of femininity or masculinity. Our study reveals that professional fund managers tend to include stocks in their portfolios that align with their own gender, with a particular inclination towards brands targeted at females. To establish causality, we implement an identification strategy that focuses on changes in fund management. Specifically, we examine single-managed funds transitioning from male to female management. These transitions show a significant increase in the allocation of holdings towards stocks associated with female-centric brands, compared to those remaining under male management.

Keywords: Mutual Funds, Behavioral Finance, Gender Bias