A Study of Analyst-Run Mutual Funds: The Abilities and Roles of Buy-Side Analysts

48 Pages Posted: 16 Sep 2012 Last revised: 5 Sep 2014

Gjergji Cici

College of William and Mary - Mason School of Business

Claire M. Rosenfeld

College of William and Mary - Finance

Date Written: September 1, 2014

Abstract

We assess the abilities and the role of buy-side analysts within mutual fund families by analyzing mutual funds managed by buy-side analysts from fourteen fund families. Buy-side analysts exhibit investment abilities by realizing positive style- and risk-adjusted returns. Analysts’ skills have a positive impact on the performance of funds from the same family. Although some managers benefit from closely following their buy-side analysts’ ideas, research generated by these analysts is generally being underutilized by affiliated managers. The underutilization is consistent with entrenched managers choosing to forgo some of the analysts’ ideas due to career considerations.

Keywords: Mutual Funds, Portfolio Managers, Buy-Side Analysts, Performance Evaluation, Asset Management, Entrenchment

JEL Classification: G10, G20, G23, G29

Suggested Citation

Cici, Gjergji and Rosenfeld, Claire M., A Study of Analyst-Run Mutual Funds: The Abilities and Roles of Buy-Side Analysts (September 1, 2014). Available at SSRN: https://ssrn.com/abstract=2147181 or http://dx.doi.org/10.2139/ssrn.2147181

Gjergji Cici (Contact Author)

College of William and Mary - Mason School of Business ( email )

P.O. Box 8795
Williamsburg, VA 23187-8795
United States
757-221-1826 (Phone)

Claire M. Rosenfeld

College of William and Mary - Finance ( email )

VA
United States

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