The Real Effect of Sociopolitical Racial/Ethnic Animus: Mutual Fund Manager Performance During AAPI Hate
2023-12-15 09:55:55
During the unexpected 2020-2021 “AAPI Hate,” mutual funds with female managers perceived as of East Asian descent (the primary targets) experienced performance deterioration relative to other female managers. The impact intensified in states with higher anti-Asian crime rates or sentiment, among more actively managed portfolios, and when these managers play leadership roles. We address alternative hypotheses, including investor redemption, workplace animus, childcare challenges, and concerns for families overseas during the pandemic. Performance deterioration manifests itself mainly in stock picking. Our study highlights the negative productivity impact of racial-ethnic animosity even when it arises outside the workplace and the labor market.