Abstract

http://ssrn.com/abstract=2093159
 
 

References (41)



 
 

Citations (2)



 


 



The People in Your Neighborhood: Social Interactions and Mutual Fund Portfolios


Veronika Krepely Pool


Indiana University - Kelley School of Business - Department of Finance

Noah Stoffman


Indiana University - Kelley School of Business - Department of Finance

Scott E. Yonker


Indiana University - Kelley School of Business - Department of Finance

December 5, 2013

Journal of Finance, Forthcoming

Abstract:     
We find that socially connected fund managers have more similar holdings and trades. The portfolio overlap of funds whose managers reside in the same neighborhood is considerably higher than that of funds whose managers live in the same city but in different neighborhoods. These effects are larger when managers are neighbors longer or are of a similar ethnic background, and are not explained by preferences. Valuable information is transmitted through these peer networks: a long-short strategy composed of stocks purchased minus sold by neighboring managers delivers positive risk-adjusted returns. Unlike prior empirical work, our tests disentangle the effects of social interactions from community effects.

Number of Pages in PDF File: 62

Keywords: Mutual funds, social networks, word-of-mouth

working papers series


Download This Paper

Date posted: June 27, 2012 ; Last revised: May 13, 2014

Suggested Citation

Pool, Veronika Krepely and Stoffman, Noah and Yonker, Scott E., The People in Your Neighborhood: Social Interactions and Mutual Fund Portfolios (December 5, 2013). Journal of Finance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=2093159 or http://dx.doi.org/10.2139/ssrn.2093159

Contact Information

Veronika Krepely Pool
Indiana University - Kelley School of Business - Department of Finance ( email )
1309 E. 10th St.
Bloomington, IN 47405
United States

Noah Stoffman (Contact Author)
Indiana University - Kelley School of Business - Department of Finance ( email )
1309 E. 10th St.
Bloomington, IN 47405
United States
(812) 856-5664 (Phone)
HOME PAGE: http://kelley.iu.edu/nstoffma/

Scott E. Yonker
Indiana University - Kelley School of Business - Department of Finance ( email )
1309 E. 10th St.
Bloomington, IN 47405
United States

Feedback to SSRN


Paper statistics
Abstract Views: 2,054
Downloads: 441
Download Rank: 35,851
References:  41
Citations:  2
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.500 seconds