What Do Mutual Fund Managers' Private Portfolios Tell Us About Their Skills?

55 Pages Posted: 21 Nov 2017 Last revised: 8 Nov 2018

See all articles by Markus Ibert

Markus Ibert

Board of Governors of the Federal Reserve System; Stockholm School of Economics - Swedish House of Finance

Date Written: September 27, 2018

Abstract

I collect a registry-based dataset on the personal portfolios of Swedish mutual fund managers. The managers who invest (a lot of) personal money in their own funds generate positive abnormal returns. Some managers are betting on their best ideas by investing personal money in individual securities that are simultaneously held by their funds. The majority do not invest in their funds nor in their funds' constituents, and hold more cash and more passive funds in their personal portfolios. Overall, the results suggest that fund managers are highly certain about their ability---or more often lack thereof---and invest their personal wealth accordingly.

Keywords: Mutual fund performance, Fund manager skill, Fund manager ownership

JEL Classification: G00, G11, G23, J44

Suggested Citation

Ibert, Markus, What Do Mutual Fund Managers' Private Portfolios Tell Us About Their Skills? (September 27, 2018). Available at SSRN: https://ssrn.com/abstract=3068656 or http://dx.doi.org/10.2139/ssrn.3068656

Markus Ibert (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Stockholm School of Economics - Swedish House of Finance ( email )

111 60 Stockholm
Sweden

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