What Drives Mutual Fund Asset Concentration?

  title={What Drives Mutual Fund Asset Concentration?},
  author={Yonathan Schwarzkopf and J. Doyne Farmer},
  journal={American Finance Association Meetings (AFA)},
Is the large influence that mutual funds assert on the U.S. financial system spread across many funds, or is it is concentrated in only a few? We argue that the dominant economic factor that determines this is market efficiency, which dictates that fund performance is size independent and fund growth is essentially random. The random process is characterized by entry, exit and growth. We present a new time-dependent solution for the standard equations used in the industrial organization… 
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