Can mutual fund managers pick stocks?
Subtitle: evidence from the trades prior to earnings announcements
By: Malcolm Baker ... [et al.].
Contributors: Baker, Malcolm.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10685; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10685.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Mutual funds.; Stocks.
Description: "We test whether fund managers have stock-picking skill by comparing their holdings and trades prior to earnings announcements with the returns realized at those events.  This approach largely avoids the joint-hypothesis problem with long-horizon studies of fund performance.  Consistent with skilled trading, we find that, on average, stocks that funds buy earn significantly higher returns at subsequent earnings announcements than stocks that they sell.  Funds display persistence in our event return-based metrics, and those that do well tend to have a growth objective, large size, high turnover, and use incentive fees to motivate managers"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/10/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.