Look for People, Not for Alpha: Mutual Funds Success and Managerial Intellectual Capital

20 Pages Posted: 4 Mar 2015

See all articles by Iuliia Naidenova

Iuliia Naidenova

National Research University Higher School of Economics

Petr Parshakov

National Research University Higher School of Economics

Marina Zavertiaeva

National Research University Higher School of Economics

Eduardo Tome

European University - Department of Economics

Date Written: March 3, 2015

Abstract

This is the first paper to explore which characteristics of Russian fund managers are connected with a higher abnormal return (measured by Jensen’s alpha) and risk (beta) for mutual funds. While only some fund managers publish biographic sketches we use the Heckman procedure to control for self-selection issues. The results support the idea that individual characteristics indicate the possibility to earn abnormal alpha. The relationship between both fund performance measures and manager experience has inverted U-shape. The results can be used as a simple screening system that helps to choose a mutual fund to invest in without sophisticated calculations.

Keywords: Russia, equity funds, individual intellectual capital, Jensen’s alpha

JEL Classification: J24, G11, G23, M50

Suggested Citation

Naidenova, Iuliia and Parshakov, Petr and Zavertiaeva, Marina and Tome, Eduardo, Look for People, Not for Alpha: Mutual Funds Success and Managerial Intellectual Capital (March 3, 2015). Higher School of Economics Research Paper No. WP BRP 42/FE/2015. Available at SSRN: https://ssrn.com/abstract=2572989 or http://dx.doi.org/10.2139/ssrn.2572989

Iuliia Naidenova (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Petr Parshakov

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Marina Zavertiaeva

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Eduardo Tome

European University - Department of Economics ( email )

Portugal

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