Horses for Courses: Fund Managers and Organizational Structures
University of Colorado at Denver - Business School
Michael J. Rebello
University of Texas at Dallas - Naveen Jindal School of Management
Thomas H. Noe
University of Oxford - Said Business School; University of Oxford - Balliol College; European Corporate Governance Institute
January 22, 2008
Second Singapore International Conference on Finance 2008
This paper considers the team management of mutual funds, fund manager ability, fund performance, and holdings. We find evidence suggesting a positive relation between fund performance and team management concurrent with a negative relation between managerial ability and the use of team management. Consistent with the notion that team management suppresses portfolio eccentricity and leads to more generic trading strategies, thereby both increasing returns and making returns less informative of fund manager ability, we also find that team management is associated with less idiosyncratic portfolio holdings and a greater loading on large capitalization, low book-to-market, and momentum stocks.
Number of Pages in PDF File: 59
Keywords: Team Management, Fund Performance, Self Selection
JEL Classification: G29working papers series
Date posted: March 4, 2008
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo2 in 0.421 seconds