Fund 'Stars' Are Not so Bright ; City Comment

Summary


SCARCELY a week goes by now without a star or star-plus team defecting from one investment bank to another or decamping from a fund management group to set up a hedge fund. But just as buying stars failed to stop Leeds United being relegated and very nearly saw Manchester City down there with them, it similarly fails to bring success in business.

The City refuses to believe this because the alternative to buying in the transfer market is better management of the talent pool the firm already has, and management has never been the City's strong suit. It does not bring in fees, which is what real people do. To paraphrase Michael Douglas in the movie Wall Street, management is for wimps.

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Extract


Fund 'Stars' Are Not so Bright ; City Comment

Harvard Business Review might not think Leeds United worthy of a case study but it has done the next best thing and looked at the impact of stars on Wall Street. Harvard found that stars rar...

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