Performance Characteristics of Individually-Managed versus Team-Managed Mutual Funds

Bliss, Richard T.; Potter, Mark; Schwarz, Christopher G.

doi:10.3905/jpm.2008.706248

Cited by 74 publications

(39 citation statements)

References 14 publications

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“…5 While the focus of these papers is not incentives per se, they do give insight into how the investment advisor's decision to put a single individual or a team in charge of a fund relates to those incentives. Bliss, Potter, and Schwarz (2008), for example, find that team-managed funds have less performance dispersion and greater similarity in their portfolio factor loadings than their individual-managed counterparts consistent with greater cooperation among team managers. While the focus of Massa, Reuter, and Zitzewitz (2010) is the role of anonymous teams, their results also show that team funds are more likely to cross-subsidize other funds.…”

Section: Individual Versus Team Fund Managementmentioning

confidence: 93%

Competition and cooperation in mutual fund families

Evans

Prado

Zambrana

2020

Journal of Financial Economics

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Using manager compensation disclosure and intra-family manager cooperation measures, we create indices of family-level competitive/cooperative incentives. Families that encourage cooperation among their managers are more likely to engage in coordinated behavior (e.g., cross-trading, cross-holding) and have less volatile cash flows. Families with competitive incentives generate higher performing funds, a higher fraction of "star" funds, but greater performance dispersion across funds. In examining the determinants of incentive schemes, competitive families are more likely to manage institutional money, and cooperative families are more likely to distribute through brokers, consistent with retail demand for nonperformance characteristics.

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Section: Individual Versus Team Fund Managementmentioning

confidence: 93%

Competition and cooperation in mutual fund families

Evans

Prado

Zambrana

2020

Journal of Financial Economics

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“…Focusing on lottery-choice experiments, a series of studies find that teams are more risk averse than individuals (Baker et al, 2008;Shupp and Williams, 2008;Masclet et al, 2009). 5 Empirical papers analyzing the data of mutual funds report these insights (Bliss et al, 2008;Bär et al, 2011). At the same time, no significant differences can be found in an experiment by Harrison et al (2012) and an empirical study of Prather and Middleton (2002).…”

Section: Studies On Team Decision Makingmentioning

confidence: 99%

The disposition effect in team investment decisions: Experimental evidence

Rau

2015

Journal of Banking & Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may August 2015Abstract This paper experimentally studies the disposition effects of teams and individuals.The disposition effect describes the phenomenon that investors are reluctant to realize losses, whereas winners are sold too early. Our experiments compare the investments of two-person teams to a setting where investors trade alone. We find that subjects investing jointly exhibit more pronounced disposition effects than individuals. A closer look reveals that investor teams hardly realize losses and predominately sell winners. The data suggest that decision-dependent emotions may explain the differences. That is, teams reporting high levels of regret exhibit significantly higher disposition effects than individuals.JEL Classification numbers: C92, D70, G12.

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“…The magnitude of returns so generated from mutual funds are affected by many factors such as ability of market timing, managerial skills, marketability, liquidity, time horizon, risk, global issues, population, and fund expenses. number of individual funds grew from 1,200 to almost 9,000 over the same period (Bliss, Potter, and Schwarz, 2008).This reflects that the investing public relies on non-bank financial institutions and increased sophistications of investors in terms of their knowledge of and appreciation of alternatives to commercial bank services (Johnstone, Hatem, & Carnes 2010).…”

Section: Introductionmentioning

confidence: 96%

The Performance Persistence of Equity and Blended Mutual Funds in Kenya

Dawe¹,

Pokhariyal²,

Mwaura³

2014

IJEF

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This paper evaluates the performance persistence of equity and blended mutual funds in Kenya for the period 2006 to 2009. The objective of the study was to establish persistence of funds' performance. The target population was seven mutual funds for which net asset values were available over the period from 1st January 2006 to 31 st December 2009. The data was collected from the funds database and annual reports available in the business daily newspapers and in some cases from fund managers' themselves. The data included mutual funds daily returns and annual reports for the period 2005 to 2009. The data was used to calculate the performance persistence of mutual funds in Kenya.Performance persistence of mutual funds was analyzed using regression equation developed by Grinblatt and Titman (1993). The general finding was that for both equity and blended fund, there was evidence of performance differences which tend to persist over time. This implies that there is significant performance persistence over the research period and therefore investors can successfully use the measures of past performance as a decision tool for fund selection.

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Performance Characteristics of Individually-Managed versus Team-Managed Mutual Funds

Cited by 74 publications

References 14 publications

Competition and cooperation in mutual fund families

Competition and cooperation in mutual fund families

The disposition effect in team investment decisions: Experimental evidence

The Performance Persistence of Equity and Blended Mutual Funds in Kenya

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