Sports Illustrated cover-type curse strikes hedge fund managers

Matthew Lynn reports:

The more publicity [celebrity fund managers] get, the worse the performance will be. ... Ozik and Sadka studied 978 hedge funds over the decade 1999 to 2008, and correlated their performance against media coverage, measured by checking mentions on Google News. “We document that hedge funds with media coverage underperform no-coverage funds by 3.5 percent annually over 1999-2008,” they concluded.
...

There are four plausible reasons for this.

First, the media coverage is backward-looking ...

Second, they attract too much money ...

Third, they believe their own hype ...

Lastly, some of them were just glorified publicity managers ...