We investigate the benefits of specialized knowledge in generating superior performance in the asset management industry. We compare the returns of health sector mutual fund managers with prior health-related education or experience (specialists) to those without such a background (generalists)....

We investigate the returns to specialized knowledge in asset management, by comparing the performance of medical specialists and generalists in managing health care sector mutual funds. Specialist alpha is nearly 5% higher on an annualized basis, after controlling for fund and manager observable...

I measure the value that investors place on trust and relationships in asset management by examining mutual fund flows around announced changes in the ownership of fund management companies. I find a decline in flows of around 7% of fund assets in the year following the announcement date,...

This paper examines how political connections affect risk exposure of financial institutions. Using a geography-based measure, I find that politically connected firms have higher leverage and their stocks have higher volatility and beta. Furthermore, prior to the 2008 financial crisis,...