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The Data and Method Financial World publishes annually a list of 10 CEOs selected for gold and silver awards by panels of security analysts. An independent panel of security analysts first chooses and ranks three top CEOs in each of 53 major industries. A second independent panel of senior security analysts chooses from the topranked executives the CEOs in broader industry groups.2 Table I lists the companies headed by Financial World's top CEOs for the period 1975-80.3 Using the CRSP monthly return file, we developed a simple trading strategy that involved maintaining equal investment proportions in the 10 best managed companies over the entire 1975-80 period.4 Purchases were made at the end of March each year, the composition of the well managed company portfolio being revised at that time to reflect the contents of the newly announced list of award winners. Returns were also collected for a control portfolio (consisting of an equal investment in each of 10 stock issues paired by industry with the well managed companies) and for a CRSP valueweighted portfolio of all NYSE stocks (hereafter referred to as the market portfolio).)
Granatelli et al. (Thu,) studied this question.