The relationship between personal characteristics of fund managers and fund returns in short-term bull and bear markets

Abstract

We explore whether the personal characteristics of fund managers significantly affect fund returns during the short bull market and the short bear market. Although the impact of fund managers' personal characteristics on fund performance has always been a research hotspot in the financial sector, there are few articles on the impact of fund managers' personal characteristics on fund performance in short-term bull and bear markets. As we all know, since 2020, the coronavirus epidemic has continued to spread, which had brought significant pressure on economic growth and increased volatility in the stock market. In 2020, China's stock market experienced a wave of short-term bull market, and the stock price rose rapidly in a few months. At the same time, in early 2022, China's stock market experienced a wave of short-term bear market, and the stock price fell rapidly in a few months. This paper selects the fund data of a wave of short-term bull market and a wave of short-term bear market in 2020 and 2022, and uses the single factor ANOVA model to explore whether the five fund managers personal characteristics, including years of securities industry, years of fund managers' service in the fund, years of fund managers' career, gender, and level of education, have a significant impact on fund returns. Results show that the returns of fund managers with longer working years in securities market are higher than those of fund managers with shorter working years in securities market, and the losses of fund managers with longer working years in securities market are lower than those of fund managers with shorter working years in securities market. At the same time, gender and years of fund managers in the securities market significantly affect the performance of fund managers fund managers who have been fund managers for many years can avoid more losses in a bear market.