To Group or Not to Group? Evidence from Mutual Fund Databases

50 Pages Posted: 29 Apr 2012 Last revised: 24 Mar 2020

See all articles by Saurin Patel

Saurin Patel

Ivey Business School, Western University

Sergei Sarkissian

McGill University; University of Edinburgh

Date Written: March 5, 2015


Despite the overwhelming trend in mutual funds towards team management, empirical studies find no performance benefits for this phenomenon. We show it is caused by large discrepancies in reported managerial structures in CRSP and Morningstar Principia datasets versus SEC records, resulting in up to 50 bps underestimation of the team impact on fund returns. Using more accurate Morningstar Direct data, we find that team-managed funds outperform single-managed funds across various performance metrics. The relation between team size and fund performance is nonlinear. Also, team-managed funds take no more risk than single-managed funds. Overall, team management benefits the fund industry performance.

Keywords: Database discrepancy, Management structure, Performance evaluation, Portfolio holdings

JEL Classification: D70, G23, J24

Suggested Citation

Patel, Saurin and Sarkissian, Sergei, To Group or Not to Group? Evidence from Mutual Fund Databases (March 5, 2015). Journal of Financial and Quantitative Analysis, 2017, 52(5), 1989-2021., Available at SSRN: or

Saurin Patel

Ivey Business School, Western University ( email )

1255 Western Road
Room 2303
London, Ontario N6G 0N1
519-661-4195 (Phone)

Sergei Sarkissian (Contact Author)

McGill University ( email )

1001 Sherbrooke St. W
Montreal, Quebec H3A 1G5
514-398-4876 (Phone)
514-398-3876 (Fax)


University of Edinburgh

29 Buccleuch Pl.
Edinburgh, Scotland EH8 9JS
United Kingdom

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