Abstract

http://ssrn.com/abstract=2327042
 
 

References (46)



 


 



Picking Winners? Investment Consultants' Recommendations of Fund Managers


Tim Jenkinson


University of Oxford - Said Business School; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)

Howard Jones


University of Oxford, Saïd Business School

Jose Vicente Martinez


University of Connecticut

September 26, 2014

Journal of Finance, Forthcoming

Abstract:     
Investment consultants advise institutional investors on their choice of fund manager. Focusing on U.S. actively managed equity funds, we analyze the factors that drive consultants’ recommendations, what impact these recommendations have on flows, and how well the recommended funds perform. We find that investment consultants’ recommendations of funds are driven largely by soft factors, rather than the funds’ past performance, and that their recommendations have a very significant effect on fund flows. However, we find no evidence that these recommendations add value, suggesting that the search for winners, encouraged and guided by investment consultants, is fruitless.

Number of Pages in PDF File: 51

Keywords: asset management, investment consultants, fund performance, asset flows

JEL Classification: G20, G23, G30

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Date posted: September 18, 2013 ; Last revised: October 8, 2014

Suggested Citation

Jenkinson, Tim and Jones, Howard and Martinez, Jose Vicente, Picking Winners? Investment Consultants' Recommendations of Fund Managers (September 26, 2014). Journal of Finance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=2327042 or http://dx.doi.org/10.2139/ssrn.2327042

Contact Information

Tim Jenkinson (Contact Author)
University of Oxford - Said Business School ( email )
Park End Street
Oxford, OX1 1HP
United Kingdom
+44 1865 288916 (Phone)
+44 1865 288831 (Fax)
HOME PAGE: http://www.sbs.oxford.edu/timjenkinson
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
HOME PAGE: http://www.ecgi.org
Howard Jones
University of Oxford, Saïd Business School ( email )
Park End Street
Oxford, OX1 1HP
Great Britain
HOME PAGE: http://www.sbs.ox.ac.uk/research/people/Pages/HowardJones.aspx
Jose Vicente Martinez
University of Connecticut ( email )
United States
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