Commentary: Fiduciary Judgment, Race and Returns

From Pensions and Investments. It's not everyday that an interdisciplinary team of Stanford University professors and researchers in the fields of finance and social psychology combine forces with industry practitioners to undertake pioneering research that illuminates deep-seeded, systematic bias in asset allocation due to race. The process of doing this research was as unique as the findings themselves. This study, "Race Influences Professional Investors' Financial Judgments," in the Proceedings of the National Academy of Sciences, examines how asset allocators evaluate teams of white-led and black-led fund managers at stronger and weaker performance levels.