Mutual Fund Bets on Market Power

Arbeitspapier

Taking a firm's competitive position into account benefits investors who are better at evaluating this qualitative information. I find that fund managers who overweight companies with market power outperform their peers. Placebo exercises and an exogenous shock to product market competition around the 9/11 terrorist attacks support this finding. Managers with larger bets on market power are more experienced and long-term oriented. They pursue more illiquid investment strategies, select superior innovators, and more actively avoid competition within their portfolio. My findings show how managers with a superior information production utilize hard-to-process information about industrial organization when picking stocks.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CFR Working Paper ; No. 16-07

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Portfolio Choice; Investment Decisions ; Asset Pricing; Trading Volume; Bond Interest Rates ; Information and Market Efficiency; Event Studies; Insider Trading ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors ; Production, Pricing, and Market Structure; Size Distribution of Firms
• Thema: Mutual fund performance ; Information production ; Qualitative information ; Product market competition

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Jaspersen, Stefan
• Ereignis: Veröffentlichung
• (wer): University of Cologne, Centre for Financial Research (CFR)
• (wo): Cologne
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/229929
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ