The article explores how fund managers make investment decisions when facing penalties for underperforming compared to their peers. The study shows that when managers are in a competitive environment, they tend to follow each other's investment choices more closely. This behavior is especially noticeable when the penalties for underperformance are stricter. The research looked at pension fund managers in Colombia and found that tighter penalties led to more trading in line with what their peers were doing, especially for managers who were not meeting performance expectations.