Saturday, June 09, 2007


Now we know what all those Harvard grads heading to Wall Street will be doing in a few years: Investing in their friends' companies.

A new study circulating through hedge funds and university campuses points to the powerful role that old-school ties play in the world of investing.

Mutual fund managers invest more money in companies that are run by people with whom they went to college or graduate school than in companies where they have no such connections, the study found. The investments involving school ties, on average, also do significantly better than other investments.