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Childhood trauma creates risk-averse fund managers, Cambridge study finds

Fund managers who experienced a parent's death or divorce in their childhood make fewer bets on 'lottery-like' stocks

Childhood trauma creates risk-averse fund managers, Cambridge study finds
Photo: Martin Barraud / Getty Images

US fund managers who experienced childhood trauma from a parent’s death or divorce take fewer risks when investing money, according to a study by the University of Cambridge’s Judge Business School.

The study, entitled Till Death (Or Divorce) Do Us Part, found that mutual fund managers exposed to these events before the age of 20 were less likely to buy “lottery-like” stocks and also make fewer bets on markets during recessions.

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