The Value of Active Mutual Fund Management: An Examination of the Stockholdings and Trades of Fund Managers

@article{Jegadeesh2000TheVO,
  title={The Value of Active Mutual Fund Management: An Examination of the Stockholdings and Trades of Fund Managers},
  author={Narasimhan Jegadeesh and Hsiu-lang Chen and Russ Wermers},
  journal={Journal of Financial and Quantitative Analysis},
  year={2000},
  volume={35},
  pages={343 - 368}
}
Abstract We investigate the value of active mutual fund management by examining the stockholdings and trades of mutual funds. We fine that stocks widely held by funds do not outperform other stocks. However, stocks purchased by funds have significantly higher returns than stocks they sell—this is true for large stocks as well as small stocks, and for value stocks as well as growth stocks. We find that growth-oriented funds exhibit better stock selection skills than income-oriented funds… 

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