Choi, Darwin
[Verfasser:in]
;
Kahraman, Bige
[Sonstige Person, Familie und Körperschaft];
Mukherjee, Abhiroop
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
In: Journal of Finance, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 23, 2016 erstellt
Beschreibung:
We study capital allocations to managers with two mutual funds, and show that investors learn about managers from their performance records. Flows into a fund are predicted by the manager's performance in his other fund, especially when he outperforms and when signals from the other fund are more useful. In equilibrium, capital should be allocated such that there is no cross-fund predictability. However, we find positive predictability, particularly among underperforming funds. Our results are consistent with incomplete learning: while investors move capital in the right direction, they do not withdraw enough capital when the manager underperforms in his other fund