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

58 Pages Posted: 19 May 2019

See all articles by Markus Ibert

Markus Ibert

Board of Governors of the Federal Reserve System; Swedish House of Finance

Date Written: April 7, 2019

Abstract

I collect a registry-based dataset on the personal portfolios of Swedish mutual fund managers. The managers who invest personal money in the very same funds they professionally manage outperform the managers who do not. The main results are consistent with a Berk and Green (2004) equilibrium in which fund managers, in contrast to regular investors, are certain about their ability to generate abnormal returns, or 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? (April 7, 2019). Available at SSRN: https://ssrn.com/abstract=3280602 or http://dx.doi.org/10.2139/ssrn.3280602

Markus Ibert (Contact Author)

Board of Governors of the Federal Reserve System ( email )

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

Swedish House of Finance ( email )

Drottninggatan 98
Stockholm, 11160
Sweden

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