Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 28, 2018 erstellt
Description:
Performance patterns involving funds managed by management companies both to be sold and recently sold suggest their careful strategic management. Intertemporal patterns in cross-subsidization in the year leading to the sale deteriorate the performance of funds from the top of relative rankings (“the stars”). The funds that a year before the sale have been at the bottom of relative rankings (“the dogs”) appear to have been at the receiving end of the cross-subsidization. Endogeneity concerns are alleviated by the finding that this pattern is not present in the context of incidental asset management company sales, and is amplified in the context of deliberate asset management company sales. Variation in the extent of active management over time is not at play because it does not vary with the critical variable indicative of cross-subsidization. Allocation of strong stock picks across mutual funds managed by the same management company follow the predicted patterns of cross-subsidization surrounding mutual-fund management company sales. Patterns of cross-subsidization reverse after the sale had been completed. Specifically, stars, having been providing cross-subsidization shortly before the sale, are on the receiving end of cross-subsidization in the period following the sale. Finally, the cross-subsidization results are pronounced only for the star funds highly likely to be delisted shortly after the completion of the management company sale