Lessons Learned from Student Managed Portfolios
Journal of Investment Management, Forthcoming
35 Pages Posted: 25 Oct 2014 Last revised: 3 Jul 2018
Date Written: June 1, 2018
We study asset management decisions of three competing student managed funds in Vienna Austria for a 10 year period. This real-world experience allows us to precisely test the tournament effect of fund management, the disposition effect and managerial team size. We find support for risk taking by the trailing funds in an annual tournament, and risk reductions by leading funds. The disposition effect usually observed in the case of retail investors is reversed. Finally, we find that smaller management teams outperform larger ones. Using a partly controlled setting, we relate the results to practice in the areas of institutional client evaluation of managers and the social and organizational structure of asset management companies.
Keywords: student funds, portfolio management, behavioral finance
JEL Classification: G02, G11, G23
Suggested Citation: Suggested Citation