Journal article
The True Colors of Money: Racial Representation and Asset Management
The Review of financial studies
06/15/2026
DOI: 10.1093/rfs/hhag038
Abstract
We examine the role of race and ethnicity in the mutual fund context at two distinct levels. At the fund manager level, we document a co-racial tilt-funds managed by minority-dominant (White-dominant) teams allocate larger portfolio weights to minority-led (White-led) firms. This tilt is not associated with superior performance. It diminishes as fund managers gain experience, suggesting the presence of inaccurate statistical discrimination. At the investor level, we find that minority-dominant funds are penalized similarly to White-dominant funds for poor performance but are not rewarded as much for superior performance. Overall, our results uncover race-related investment choices at both levels.
Details
- Title: Subtitle
- The True Colors of Money: Racial Representation and Asset Management
- Creators
- Lina Han - University of Massachusetts AmherstXing Huang - Washington University in St. LouisOhad Kadan - Arizona State UniversityJimmy Wu - Washington University in St. Louis
- Resource Type
- Journal article
- Publication Details
- The Review of financial studies
- DOI
- 10.1093/rfs/hhag038
- ISSN
- 0893-9454
- eISSN
- 1465-7368
- Publisher
- Oxford Univ Press
- Number of pages
- 43
- Grant note
- Send Center for the Study of Race, Ethnicity & Equity at Washington University in St. Louis Scholar Grant program
- Language
- English
- Electronic publication date
- 06/15/2026
- Academic Unit
- Finance
- Record Identifier
- 9985222831202771
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