Mutual Fund Performance: An Empirical Decomposition into Stock-Picking Talent, Style, Transactions Costs, and ExpensesstyleDecompositionbasis pointstransactions costsStock-PickingHold Stocksnet returnsexpenses and transactionshigh-turnoverWe use a new database to perform a comprehensive analysis of the mutual...
Grinblatt,Titman,andWermers(1995) attribute much of this performance to the characteristics of the stocks held by funds. For example, funds using momentum-investing strategies hold stocks with higher average returns than passive stock indexes. However, a recent paper by Chen, Jegadeesh, ...
What is the explanation for persistence in mutual fund performance? 如何解释共同基金业绩的持续性 Can common factors in stock returns and mutual fund expenses explain the predictability of mutual find returns?股票回报和共同基金支出的共同因素能否解释共同基金回报的可预测性? Literature Review Data Descriptio...
Stock performance benchmarking is a strategy employed by investors to help determine the different performance aspects of an investment portfolio. Investors typically use benchmarking to get a better assessment of a portfolio’s return, how risky it is as a whole, and how to allocate ...
3. Poor Performance Mutual fund returns are not guaranteed. In fact, according to research, a large majority of mutual funds fail to beat major market indexes like the S&P 500. In addition, mutual funds are not insured against losses. ...
Evidence does not support the hypothesis that affiliations with hedge funds allow side-by-side mutual funds to attract superior stock-picking talent. Our evidence does not allow us to rule out the possibility that management firms maximized fee income by strategically transferring performance from ...
Fund size (net assets under management) affects mutual fund performance. Mutual funds must attain a minimum fund size in order to achieve sufficient returns to justify their costs of acquiring and trading on information. Furthermore, there are diminishing marginal returns to information acquisition and...
1、Exceptional performance in picking stocks have been observed在选股方面的杰出表现已被观察到 Peter Lynch of Fidelity Magellan Schroder Ultra Fund 2、Small subgroup exhibit superior performance 小群体表现优异 3、Exceptional performance due to luck or skill?
they are not completely risk-free. The securities held in a mutual fund may lose value either due to market conditions or to the performance of a specific security, such as the stock of a company if the company performs poorly. Other risks could be difficult ...
Secondly, because smaller funds are lessdiversified, a poor performance by one stock will have a big negative impact on the overall portfolio. Finally, operating expenses tend to be higher for smaller funds because of the lack ofeconomies of scale. ...