Robinhood traders
Image by Anna Palinska from Pixabay

New research suggests that Robinhood traders may be smarter, sexier and more masculine than traditional value investors.

The Science

Throughout time, value investors were seen as highly regarded professionals in the finance industry.  A true value investor typically spent a few years at an investment bank learning how to model financials and make boring investor decks.  After a few years the burnt out bankers transitioned to a research analyst, either on the sell or buyside, to learn the fundamentals of investing.  Finally after years of hard work they would eventually become a portfolio manager and could really start labeling themselves as true value investors.

All of the hard work to become a PM at a multi-strategy hedge fund paid off in the form of notoriety…the smarts.  If you were a PM at a large hedge fund everyone pretty much assumed you had the brains to back it up.  And during the dog days of Wall Street, brains equaled looks.

But a new study suggests traditional value investors are a thing of the past.

Robinhood traders: the new brains on Wall Street

The study was conducted by PhD students from MIT University.  The study included a data set of 1,000 traditional value investors and 1,000 Robinhood traders.  The PhD students used a series of questions to determine who was smarter, more masculine and sexier: the traditional value investors or Robinhood traders.  The results shocked Wall Street.

According to the study, Robinhood traders are smarter, more masculine and sexier than traditional value investors.

The Study

The study found that Robinhood traders were smarter, more masculine and sexier than traditional value investors.  To determine who was the more sexy bunch the PhD students asked the following questions:

  • Are you overweight?
  • How much hair is on your head?
  • Can you bench press more than 75 pounds?
  • Does your significant other pity you?
  • Do you build DCF models?
  • Did you waste your time studying for the CFA?
  • Are you a fat man in a red convertible?
  • Do women only want you for your money?
  • Do you go all in on bankrupt stocks and make millions?
  • Is Wall Street Bets your source for research?
  • Have you lost a fortune shorting Tesla?
  • Do you stuff your face with chips and candy when your returns trail the S&P 500?
  • Is the only thing your bed is used for is sleeping?
  • Do you snore at night?
  • How do magnets work?
  • Who is a better investor Violent J or Warren Buffett?
  • Do you know who Dave Portnoy is?

The results from the questions shocked the PhD students.  According to the study, Robinhood investors were smarter, sexier and more masculine than traditional value investors.  AND BY A WIDE MARGIN.