Investors often complain that mutual-fund managers don’t put their own money at risk and thus don’t have enough “skin in the game.”
Fund manager Daniel J. Rice III might have too much. With his co-manager, Denis J. Walsh III, Mr. Rice oversees $4.5 billion in energy investments at BlackRock. There isn’t any doubt that Mr. Rice is good at his day job. His $953 million BlackRock Energy & Resources Fund has outperformed 96% of its peers over the past decade, according to Morningstar.
But Mr. Rice moonlights as an oil man. Those dual roles could conflict, say some experts in securities law. Mr. Rice and BlackRock disagree.
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This article was originally published on The Wall Street Journal.
Further reading
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money