Hedge fund managers who own sports cars take on proportionally more risk and create lower returns than their peers, according to researchers from the US and Singapore. However, a study from Houston's Rice University argued that investors with moderate overconfidence or bullish sentiment are more likely to survive in the world of investment. The study, published by the journal Risk Analysis & Management, found that those who have high levels of optimism tend to be better at predicting market movements over time.
Hedge fund managers who own sports cars take on proportionally more risk and create lower returns than their peers, according to researchers from the US and Singapore. However, a study from Houston's Rice University argued that investors with moderate overconfidence or bullish sentiment are more likely to survive in the world of investment. Hedge fund managers can gain a competitive edge by using training techniques to keep their risk-taking tendencies in check.