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
Date Written: September 1, 2014
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: Suggested Citation