An Analysis of the Recommendations of the Superstar Money Managers at Barron's Annual Roundtable

J. OF FINANCE, Vol. 50 No. 4, September 1995

Posted: 14 Jul 1998  

Hemang Desai

Southern Methodist University - Cox School of Business

Prem C. Jain

Georgetown University - Department of Accounting and Business Law

Abstract

We examine the performance of common stock recommendations made by prominent money managers at Barron's Annual Roundtable from 1968 to 1991. To avoid survivorship bias, we examine the performance of recommendations by all the participants. The buy recommendations earn significant abnormal returns of 1.91% from the recommendation day to the publication day, a period of about 14 days. However, the abnormal returns are essentially zero for one to three year post-publication day holding periods. Thus, an individual investing according to the Roundtable recommendations published in Barron's would not benefit from the advice.

JEL Classification: G14

Suggested Citation

Desai, Hemang and Jain, Prem C., An Analysis of the Recommendations of the Superstar Money Managers at Barron's Annual Roundtable. J. OF FINANCE, Vol. 50 No. 4, September 1995. Available at SSRN: https://ssrn.com/abstract=7014

Hemang Desai

Southern Methodist University - Cox School of Business ( email )

Cox School of Business
6212 Bishop Blvd.
Dallas, TX 75275-0333
United States
214-768-3185 (Phone)
214-768-4099 (Fax)

Prem C. Jain (Contact Author)

Georgetown University - Department of Accounting and Business Law ( email )

McDonough School of Business
Washington, DC 20057
United States
202-687-2260 (Phone)

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