Lessons Learned from Student Managed Portfolios

Journal of Investment Management, Forthcoming

35 Pages Posted: 25 Oct 2014 Last revised: 3 Jul 2018

See all articles by Stephan Kranner

Stephan Kranner

Vienna University of Economics and Business

Neal Stoughton

Vienna University of Economics and Business; University of Waterloo

Josef Zechner

Vienna University of Economics and Business

Date Written: June 1, 2018

Abstract

We study asset management decisions of three competing student managed funds in Vienna Austria for a 10 year period. This real-world experience allows us to precisely test the tournament effect of fund management, the disposition effect and managerial team size. We find support for risk taking by the trailing funds in an annual tournament, and risk reductions by leading funds. The disposition effect usually observed in the case of retail investors is reversed. Finally, we find that smaller management teams outperform larger ones. Using a partly controlled setting, we relate the results to practice in the areas of institutional client evaluation of managers and the social and organizational structure of asset management companies.

Keywords: student funds, portfolio management, behavioral finance

JEL Classification: G02, G11, G23

Suggested Citation

Kranner, Stephan and Stoughton, Neal M. and Zechner, Josef, Lessons Learned from Student Managed Portfolios (June 1, 2018). Journal of Investment Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2514593 or http://dx.doi.org/10.2139/ssrn.2514593

Stephan Kranner

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Neal M. Stoughton (Contact Author)

Vienna University of Economics and Business ( email )

Austria

University of Waterloo ( email )

Waterloo, Ontario N2L 3G1
Canada

Josef Zechner

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien A-1019
Austria

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