• Corpus ID: 44886483

On the Role of Human Capital in Investment Management

  title={On the Role of Human Capital in Investment Management},
  author={Leonard Kostovetsky and Alberto Manconi},
Asset management companies in the United States employ several hundred thousand people in advisory, portfolio management, and research roles, yet academic research suggests their investments, on average, underperform passive benchmarks net of fees. Using a new dataset on over 10,000 registered investment advisors (RIAs), we analyze which clienteles, asset classes, and strategies require more human capital, as well as the value that human capital adds to investment management. We find that while… 

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