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Why You Should Invest With Managers Who Eat Their Own Cooking

Higher levels of manager investment are a good sign.

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It pays to invest with managers who invest in their funds.

I've suggested this before and now I have more conclusive data pointing this way. Last year I looked at the Morningstar 500 funds and found that those in which managers invest more than $1 million produced modestly better performance than the rest of the subset. Now I've looked at the broader fund universe and found a strong link.

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Russel Kinnel has a position in the following securities mentioned above: PTTRX. Find out about Morningstar’s editorial policies.