Mutual Fund Performance and Private Information

22 Pages Posted: 22 Jun 2016 Last revised: 24 Aug 2017

See all articles by Javier Vidal-García

Javier Vidal-García

Harvard University; Complutense University Madrid

Marta Vidal

Universidad Europea de Madrid; Universidad Complutense de Madrid (UCM)

Date Written: June 19, 2016


This paper examines the use of private information by mutual funds with unconditional and conditional performance models. Using daily data for 35 countries over the 1990-2015 period, we find evidence that the use of conditioning information provides a more accurate estimation of fund performance. The use of conditioning information in mutual fund performance measurement is both statistically and economically significant. We show that unconditional alphas and betas are slightly smaller than the average conditional estimates. However, we do not find a robust evidence of private information in mutual fund performance.

Keywords: mutual fund; performance measurement; private information; conditional performance

JEL Classification: G11, G12

Suggested Citation

Vidal-García, Javier and Vidal, Marta, Mutual Fund Performance and Private Information (June 19, 2016). Available at SSRN: or

Javier Vidal-García (Contact Author)

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

Complutense University Madrid ( email )

School of Business Administration
Somosaguas Campus
Madrid, Madrid 28223

Marta Vidal

Universidad Europea de Madrid ( email )

Villaviciosa de Odón
Madrid, 28670

Universidad Complutense de Madrid (UCM) ( email )

Somosaguas Campus
Madrid, 28223

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