Mutual Fund Outperformance and Growth

Journal of Investment Management (JOIM), Second Quarter 2014

NYU Tandon Research Paper No. 2441339

6 Pages Posted: 16 Nov 2014 Last revised: 18 Jan 2018

See all articles by Gregg S. Fisher

Gregg S. Fisher

Quent Capital

Philip Maymin

Fairfield University - Charles F. Dolan School of Business; Athletes Unlimited

Zakhar Maymin

Independent

Date Written: May 23, 2014

Abstract

Does better performance lead to more assets? We examine nearly 30,000 mutual funds to determine the effect that a funds outperformance relative to its peers has on the funds later asset size. We find that a fund that earns ten percent more than the size-weighted average of its peers in its style group in one year will on average experience an extra five percent excess asset growth in the subsequent year. The findings are robust to all types of fund styles and all fund sizes, with two exceptions: small funds of any style, and very large fixed income funds.

Keywords: Mutual funds, alpha, outperformance, bench-marks, asset growth, NAV

JEL Classification: G00

Suggested Citation

Fisher, Gregg S. and Maymin, Philip and Maymin, Zakhar, Mutual Fund Outperformance and Growth (May 23, 2014). Journal of Investment Management (JOIM), Second Quarter 2014, NYU Tandon Research Paper No. 2441339, Available at SSRN: https://ssrn.com/abstract=2441339

Gregg S. Fisher (Contact Author)

Quent Capital ( email )

1120 Avenue of the Americas
4th Floor
NEW YORK, NY 10036
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212-796-0707 (Phone)

HOME PAGE: http://www.quentcapital.com

Philip Maymin

Fairfield University - Charles F. Dolan School of Business ( email )

N. Benson Road
Fairfield, CT 06824
United States

Athletes Unlimited ( email )

888 7th Avenue
New York, NY 10106
United States

Zakhar Maymin

Independent ( email )

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