Nice Hedge Fund Managers Finish Last? Maybe Not

We all know nice guys finish last. This is particularly true when it comes to high finance and hedge fund managers. It's a dog eat dog world and only the most ruthless hedge fund managers make it to the top right? Wrong. 

At least according to a new study published in the Personality and Social Psychology Bulletin.

According to this new research, hedge fund managers that show signs of narcissism, Machiavellianism, and psychopathy actually underperform their peers. Sure, it's only underperformance of  1%, but this is still welcome news to the optimists among us.

Researchers at UC Berkeley and University of Denver attempted to measure the personality traits of over 100 hedge funds managers. They then compared this with 10 years of performance data. They found those with psychopathic traits underperformed in terms of annualized and risk-adjusted returns.

Of course, the sample size is rather small, representing just a few percent of US hedge fund managers

Still, the study also is supported by similar research that shows those who display courage, justice, and humanity tend to be the most effective leaders. 

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