Do generalists profit from the fund families' specialists? Evidence from mutual fund families offering sector funds

Arbeitspapier

This paper analyzes how the existence of sector funds (specialists) within a mutual fund family affects the performance and investment behavior of affiliated diversified equity funds (generalists). First of all, I show that specialists have stock picking skills. Second, information flows from the specialist to the generalist. The overlap in specialist and generalist industry sub-portfolios is positively related to the past track-record of the specialist in this industry and specialist work experience and negatively related to the overall work experience and the industry track-record of the generalist. Generally, stocks held by specialists appear in more diversified funds of the family than other stocks. As a result, diversified funds from fund families with sector funds perform better, trade more, and hold more hard-to-value stocks than their peers from families without sector funds.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CFR Working Paper ; No. 16-09

Classification and Topics

• Classification: Wirtschaft ; Organizational Behavior; Transaction Costs; Property Rights ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
• Subject: mutual funds ; fund families ; analyst skills ; manager skills ; information sharing ; fund performance ; investment behavior

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Göricke, Marc-André
• Event: Veröffentlichung
• (who): University of Cologne, Centre for Financial Research (CFR)
• (where): Cologne
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/148376
• Last update: 10.03.2025, 11:42 AM CET