- They created fake financial firms, swapped in headshots of black and white ” managers,” and asked actual asset managers to rate the firm’s performance.
- The results showed that when performance was good, having black managers led to lower ratings than when the same performance was supposedly delivered by a white-led firm.
- Instead, financial specialists called ” asset allocators” identify firms that have funds with the right mix of performance and targets, and these allocators invest in a number of them.
- They then substituted in headshots of fake managers of these fake funds, using either black or white men.
- Asset allocators were asked to rate various aspects of the firm’s performance and management, as well as giving an overall rating and indicating whether they’d be interested in evaluating it for a possible investment.
Read full article: arstechnica.com