Dodson: Allocators systematically discount Black fund managers with identical track records
Daryn Dodson · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · Dec 14, 2020 · at 26:25
Daryn Dodson, founder of Illumen Capital, discusses his firm's published PNAS research study with Stanford researchers Jennifer Eberhardt and Ashby Monk on racial bias among institutional asset allocators.
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“So we secretly tested a 180 asset allocators managing over a trillion dollars in capital and almost every situation that an asset allocator looked at a high performing black lead fund and a high performing white lead fund. When they looked at these two cases, we rotated only the race of the leader of the fund and the asset allocators It was as if they made up stories when they saw the race of the leader of the fund and artificially discounted their ability to execute on strategy, artificially discounted their ability to raise capital, and made up these collections of different stories that led and would likely lead to the undercapitalization based on the exact same track record Of performance and all other credentials of the managing director of the funds.”
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