Good linkage from Steven Silvers's Scatterbox... Check out this post regarding a weekend NYT article describing a research project that aims to calculate how much school ties come into play in making investment decisions at mutual funds.

Short answer, they do....from the NYT:

"The authors of the study offer two possible explanations — one benign and one decidedly not. Fund managers may simply know more about their old classmates, including which ones are likely to make good executives. The alternate explanation is that those executives may be passing along inside information to the fund managers. The researchers do not take a position about which explanation is more likely."

Anyone not a scientist that would like to take a stab at which is the more likely explanation? Check out Scatterbox and click on through to the NYT to read the rest of the article.

Labels: Caveat Research, insider trading, Scatterbox