Some fund watchers are calling for fund managers to put their money where their mouth is, so to speak. Although fund managers stake their reputation and bonus on the funds they manage, critics are asserting that they should be putting their own money on the line, just like the shareholders, Reuters reports.
Many managers do, in fact "eat their own cooking," the industry term for investing in a fund one manages. Fund watchers are calling for regulation that would require the managers to state exactly how much money, if any at all, is invested in the fund.
Industry watchdog Roy Weitz told Reuters that people in position of public trust, such as fund managers, have a responsibility to disclose some personal information, such as their own holdings in a fund.
"Its essentially the same argument we heard fund managers advancing about why CEOs should own a lot of their own company," Russel Kinnel, director of fund analysis at
A spokeswoman from
