Running a Mutual Fund: Performance and Trading Behavior of Runner Managers

52 Pages Posted: 24 Jan 2019 Last revised: 17 Mar 2022

See all articles by Arash Dayani

Arash Dayani

Clemson University, Department of Finance

Sima Jannati

University of Missouri-Columbia

Date Written: March 16, 2022

Abstract

This paper examines the relationship between the representation of marathon runners in a fund management team and its future performance. We find that funds with a larger proportion of runner managers have a higher level of risk-adjusted excess returns. We also find that these funds have a lower level of disposition bias, deviate more from their benchmark portfolios, hold fewer stocks in their portfolios, and hold their stocks for a longer duration. Also, they tend to hold more stocks that are about to experience desirable earnings outcomes. Overall, the results suggest that personality traits that affect achievement in other dimensions of life may translate into fund management success.

Keywords: managerial characteristics; mutual fund performance; distance runners; disposition effect; investment style.

JEL Classification: G11, G20, G41

Suggested Citation

Dayani, Arash and Jannati, Sima, Running a Mutual Fund: Performance and Trading Behavior of Runner Managers (March 16, 2022). Available at SSRN: https://ssrn.com/abstract=3315001 or http://dx.doi.org/10.2139/ssrn.3315001

Arash Dayani

Clemson University, Department of Finance ( email )

Clemson, SC 29634
United States

HOME PAGE: http://www.arashdayani.com

Sima Jannati (Contact Author)

University of Missouri-Columbia ( email )

511 Cornell Hall
COLUMBIA, MO 65211
United States

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