Racial bias exists in our system of institutional investment, says a new paper in Proceedings of the National Academy of Sciences (that I co-authored).
The paper reveals the findings of a 2.5 year study (secret project) with collaborators across Stanford and industry. In short, we find that a manager’s racial background influences the investment judgments of asset allocators.
With ~$100T in AUM, the influence these allocators have on the entire chain of financial intermediation, capitalism and even society cannot be overstated. We all need to do more to counter racial bias in investment decisions to ensure free markets are actually free.
Ashby Monk (@sovereignfund)