Performance Implications of Active Management of Institutional Mutual Funds
27 Pages Posted: 11 Mar 2015
Date Written: March 2015
We use information on institutional US mutual funds to examine the performance implications of the decisions they make when actively implementing their investment processes. Our findings show that the success of active fund managers' stock selection decisions is influenced both by the aggressiveness with which they implement their processes and also the style tilts incorporated into their active positions. Our findings provide useful insights into both where one might best look when choosing an active manager and also suggest possible profitable investment strategies.
Keywords: Institutional mutual funds, Active management, Performance evaluation
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