Daniel Cavagnaro, Berk Sensoy, Yingdi Wang, Michael Weisbach, 10 September 2016

Investment officers are often the highest-paid individuals in institutions such as pension funds and foundations, because of the size and importance of the decisions they make. This column argues that successful investment officers earn their pay, because they make returns that can't be explained by luck alone. Therefore, institutional investors might benefit from investing in high-quality investment officers.