Details

Autor(en) / Beteiligte

• JIANG, HAO
• VERARDO, MICHELA

Titel

Does Herding Behavior Reveal Skill? An Analysis of Mutual Fund Performance

Ist Teil von

• The Journal of finance (New York), 2018-10, Vol.73 (5), p.2229-2269

Ort / Verlag

Cambridge: Wiley Periodicals, Inc

Erscheinungsjahr

2018

Quelle

Wiley-Blackwell Full Collection

Beschreibungen/Notizen

• We uncover a negative relation between herding behavior and skill in the mutual fund industry. Our new, dynamic measure of fund-level herding captures the tendency of fund managers to follow the trades of the institutional crowd. We find that herding funds underperform their antiherding peers by over 2% per year. Differences in skill drive this performance gap: Antiherding funds make superior investment decisions even on stocks not heavily traded by institutions, and can anticipate the trades of the crowd; furthermore, the herding-antiherding performance gap is persistent, wider when skill is more valuable, and larger among managers with stronger career concerns.