For years, the best hedge-fund managers have been depicted in popular culture as ruthless risk-takers who put profits before people. Recent research, however, suggests that being callous and ruthless may in fact be counterproductive to success on Wall Street.
Hedge-fund managers who exhibited more psychopathic traits earned .88% less each year than their less psychopathic peers. That means with compound interest, an investment of $1 million would earn $161,694 (15%) less over the course of 10 years if invested with a manager who displayed more psychopathic tendencies, researchers said.
To identify which hedge-fund managers were psychopathic, researchers watched video interviews of the managers, looking for behaviors that would reveal psychopathic traits, such as gloating over rivals' failures or showing no emotion when discussing mass layoffs.
Generally speaking, psychopaths have a propensity to lie and manipulate others for self-gain, and an appetite for taking risks . . . they also tend to show a lack of conscience.
What do you all think? What personality traits are the most conducive to success on Wall Street? Do you think that individuals who exhibits traits such as honesty and morality outperform their more ruthless and scheming counterparts?
From Market Watch