We show that early-life family disruption (death or divorce of a parent) causes fund managers to be more risk averse when they manage their own funds. Treated managers take lower systematic, idiosyncratic, and downside risk than non-treated managers. This effect is most pronounced for managers...

We show a long-lasting association between a common societal phenomenon, early-life family disruption, and investment behavior. Fund managers who experienced the death or divorce of their parents during childhood take lower risk and are more likely to sell their holdings following riskincreasing...

Mutual fund flows are negatively related to fund performance more than about five years prior. This finding holds for both institutional and retail share classes, and across fund style categories. We develop and test the investor disappointment hypothesis, which holds that those who forecast...