Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 31, 2020 erstellt
Description:
Academics and practitioners have long anticipated a decline in the performance of institutional investors as their holdings reach the point where they are largely trading amongst themselves. We confirm that institutional investor performance has declined over time -- but it appears unrelated to the growth in institutional ownership. Institutional growth has been gradual, whereas the only discernible feature in the time-series of institutional performance is a structural shift (drop) in 2000. Reg FD appears to be a key factor. Specifically, there was an abrupt drop in institutions' performance trading with both individuals and firms (issuance/repurchases) following Reg FD