ABSTRACT Mutual fund managers may decide to deviate from a well‐diversified portfolio and concentrate their holdings in industries where they have informational advantages. In this paper, we study the relation between industry concentration performance of actively managed U.S. mutual funds 1984 1999. Our results indicate that, on average, more concentrated perform better after controlling for risk style differences using various measures. This finding suggests that investment ability is...

A previous study finds evidence to support selection ability among active fund investors for equity funds listed in 1982. Using a large sample of funds, I find that receive more money subsequently perform significantly better than those lose money. This effect is short‐lived and largely but not completely explained by strategy betting on winners. In the aggregate, there no significant beat market. However, it possible earn positive abnormal returns using cash flow information small funds.

We argue that the purchase decisions of mutual fund investors are influenced by salient, attention‐grabbing information. Investors more sensitive to in‐your‐face fees, like front‐end loads and commissions, than operating expenses; they buy funds attract their attention through exceptional performance, marketing, or advertising. analyze flows over last 30 years find negative relations between front‐end‐load fees. In contrast, we no relation expenses flows. Additional analyses indicate...

Despite extensive disclosure requirements, mutual fund investors do not observe all actions of managers. We estimate the impact unobserved on returns using return gap—the difference between reported and a portfolio that invests in previously disclosed holdings. document some funds persistently create value, while such other destroy value. Our main result shows gap predicts performance.

We study the relation between mutual fund trades and mass media coverage of stocks. find that funds exhibit persistent differences in their propensity to buy media-covered Moreover, this is negatively related future performance. Funds highest decile underperform lowest by 1.1% 2.8% per year. These results do not extend sells, likely because funds' inability sell short. Overall, findings suggest professional investors are subject limited attention.

Mutual fund managers may decide to deviate from a well-diversified portfolio and concentrate their holdings in industries where they have informational advantages. In this paper, we study the relation between industry concentration performance of actively managed U.S. mutual funds 1984 1999. Our results indicate that, on average, more concentrated perform better after controlling for risk style differences using various measures. This finding suggests that investment ability is evident among...

Abstract Our paper analyzes the geographical preferences of hedge fund investors and implication these for performance. We find that funds overweigh their investments in located same areas with a stronger local bias exhibit superior Local also gives rise to excess flow comovement extreme return clustering within geographic areas. Overall, our results suggest while benefit from advantages, creates market segmentation can destabilize underlying funds.

We examine situations where the same fund manager simultaneously manages mutual funds and hedge funds. refer to this as side-by-side management. document 344 such cases involving 693 538 Proponents of practice argue that it is essential hire retain star performers. Detractors temptation for abuse high, should be banned. Our analysis based on various performance metrics shows managers significantly outperform peer funds, consistent with privilege being granted primarily Interestingly, are at...

Does the mutual fund industry lose its best managers to hedge funds? We find that funds are able retain with good performance in face of competition from a growing industry. On other hand, poor performers more likely leave A small fraction these jobs smaller and younger companies, especially when is rapidly. Analogously, better-performing retained by allowing them manage side-by-side.

The EU Carbon Border Adjustment Mechanism (CBAM), which is regarded as the EU’s key policy tool to address carbon leakage, might have a non-negligible impact on China’s exports, China an important trading partner for carbon-intensive products. This paper uses GTAP-E model simulate of CBAM exports from four aspects, export price, trade structure, value and terms trade, by setting up multiple scenarios. results show that reduces prices taxed sectors EU, other same change characteristics....