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.
To view this article, become a Morningstar Basic member.
Russel Kinnel has a position in the following securities mentioned above: PTTRX. Find out about Morningstar’s editorial policies.