This website use cookies and similar technologies to improve the site and to provide customised content and advertising. By using this site, you agree to this use. To learn more, including how to change your cookie settings, please view our Cookie Policy
Pocketmags Digital Magazines
GB
Pocketmags Digital Magazines
   You are currently viewing the United Kingdom version of the site.
Would you like to switch to your local site?
Digital Subscriptions > The Hedge Fund Journal > Issue 128 – Nov | Dec 2017 > An Exploratory Study on the Relevance of Emotional Intelligence in Hedge Fund Leadership

An Exploratory Study on the Relevance of Emotional Intelligence in Hedge Fund Leadership

RESEARCH

Summary

Beginning a dialogue on the relationship between hedge fund (HF) leadership and emotional intelligence (EQ) is the objective of this research paper. By composing an exploratory study determining the relevance of EQ in HF leadership, the researcher aims to lay a foundation for future discussion and debate. To our knowledge, this is the first study of its kind in the field.

The study utilised Goleman’s (1998) EQ framework to examine the growth impact of a HF leader’s EQ. More specifically, how determinant is a HF leader’s self-awareness (SA), self-regulation (SR), motivation, empathy and social skill in his success? Goleman’s model was chosen due to its applicability to both portfolio management and organisational leadership – a HF leader’s primary responsibilities.

The empirical evidence suggests not only is a high level of EQ beneficial to successful HF leadership – it was deemed vital in specific instances. If the fund’s leadership possessed a high level of EQ, the benefits reached beyond performance and AUM growth. Founders with a high EQ positively impacted the culture and climate, and a leader with a lower EQ had converse effects. The leadership of failing funds often had low EQ levels.

What is emotional intelligence?

Dulewicz and Higgs (2000, p.343) contest the roots of this “nebulous” construct of EQ appear to “lie in the apparent inability of traditional measures of rational thinking such as IQ tests or grades to predict who will succeed in life.”

While the definitions of EQ are often varied for different researchers according to Ciarrochi et al (2000), they tend to be complimentary rather than contradictory and cover more or less four distinct areas: emotional perception, regulation, understanding, and utilisation. Rosete and Ciarrochi (2005) classify EQ approaches in two broad categories: ability models (Mayer and Salovey, 1997) and mixed models.

READ MORE
Purchase options below
Find the complete article and many more in this issue of The Hedge Fund Journal - Issue 128 – Nov | Dec 2017
If you own the issue, Login to read the full article now.
Single Issue - Issue 128 – Nov | Dec 2017
£119.99
Or 11999 points
6 Month Digital Subscription
Only £ 120.00 per issue
£599.99
Or 59999 points

View Issues

About The Hedge Fund Journal

Informing the Hedge Fund Community. With access to some of the industry’s biggest names and an astute and talented group of writers and contributors, The Hedge Fund Journal has established itself as a trusted source of information on the hedge fund industry.