The Performance Persistence of Experienced Mutual Fund Managers

Posted: 3 Sep 1998  

Gary E. Porter

Northeastern University

Jack W. Trifts

Rollins College, Crummer Graduate School of Busine

Abstract

This study examines the performance of 93 fund managers over the 10 year period 1986 through 1995 using relative percentile ranks based on quarterly compounded, annual total returns measured against funds with the same investment objective. On average, managers with 10-year track records at the same fund do not perform better than managers with shorter track records. Also, for these experienced managers, superior performance in one five-year period is not predictive of superior performance over the next five years. However, inferior performance persists particularly for funds with above average expense ratios.

JEL Classification: G12, G14

Suggested Citation

Porter, Gary E. and Trifts, Jack W., The Performance Persistence of Experienced Mutual Fund Managers. Financial Services Review, Vol. 7, No. 1. Available at SSRN: https://ssrn.com/abstract=121131

Gary E. Porter (Contact Author)

Northeastern University ( email )

360 Huntington Ave.
Boston, MA 02115
United States
407-484-7520 (Phone)

Jack Trifts

Rollins College, Crummer Graduate School of Busine ( email )

Winter Park, FL 32789
United States
407-646-2404 (Phone)

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