Investor Sentiment and the Closed-End Fund Puzzle

  title={Investor Sentiment and the Closed-End Fund Puzzle},
  author={Charles M. C. Lee and A. Shleifer and R. Thaler},
This paper examines the proposition that fluctuations in discounts on closed end funds are driven by changes in individual investor sentiment toward closed end funds and other securities. The theory implies that discounts on various funds must move together, that new funds get started when seasoned funds sell at a premium or a small discount, and that discounts on the funds fluctuate together with prices of securities affected by the same investor sentiment. The evidence supports these… Expand
1,686 Citations