FYI: Having skin in the game matters. Especially with mutual fund managers. Funds with at least one manager who has a lot of their own money invested in the fund are more likely to outperform than funds whose managers have little or none of their cash on the line, according to a recent report by Russel Kinnel, director of fund research for Morningstar Inc.
Among the 100 largest mutual funds tracked by the research firm, 56 have at least one manager who has more than $500,000 of his own money invested in the fund. Thirty-one of the 50 — or 62% — with the best average annual gains over the five years through Oct. 31 have at least one manager with more than $500,000 invested in the fund.
Regards,
Ted
http://www.investors.com/etfs-and-funds/mutual-funds/does-your-mutual-fund-manager-have-skin-in-the-game-these-do/
