Abstract

https://ssrn.com/abstract=7418
 


 



Preferences for Stock Characteristics as Revealed by Mutual Fund Portfolio Holdings


Eric G. Falkenstein


Pine River Capital Management


J. OF FINANCE, Vol. 51 No. 1, March 1996

Abstract:     
This investigation of the cross-section of mutual fund equity holdings for the years 1991 and 1992 shows that mutual funds have a significant preference towards firms with high visibility and low transaction costs, and are averse to stocks with low idiosyncratic volatility. These findings are relevant to theories concerning investor recognition, a potential agency problem in mutual funds, tests of trend-following and herd behavior by mutual funds, and corporate finance.

JEL Classification: G30


Not Available For Download

Date posted: June 19, 1998  

Suggested Citation

Falkenstein, Eric G., Preferences for Stock Characteristics as Revealed by Mutual Fund Portfolio Holdings. J. OF FINANCE, Vol. 51 No. 1, March 1996. Available at SSRN: https://ssrn.com/abstract=7418

Contact Information

Eric G. Falkenstein (Contact Author)
Pine River Capital Management ( email )
601 Calson Parkway, Suite 330
Minnetonka, MN 55347
United States
6123091588 (Phone)
6123091588 (Fax)
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