 Emerging market active managers: Skilled or stubborn?Antonio Fasano and Giuseppe Galloppo Journal of Behavioral and Experimental Finance, 2016, vol. 9, issue C, 132-135 Abstract: This paper examines the impact of active management–intended as an investment policy focusing on specific assets/styles–on portfolios’ risk–return profiles, at country level and at whole market level, with respect to the BRIC area. Active management is often coupled with overconfidence in stock-picking exhibited by those fund managers who overweight the portfolio with securities for which they have a strong belief and perhaps an emotional commitment. To this end, the main question this study wishes to answer concerns whether the lack of portfolio diversification is the consequence of fund managerial skills, generating a positive alpha, or it is determined by their attitude to overestimate private (local) information and their self-ability to beat the market. The study does not find evidences of focused portfolios overperformance, which suggests behavioural biases prevail over a disciplined asset allocation approach. Keywords: BRIC markets; Active investment; Overconfidence; Alpha; Risk measures (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:9:y:2016:i:c:p:132-135 DOI: 10.1016/j.jbef.2015.11.001 Access Statistics for this article Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber More articles in Journal of Behavioral and Experimental Finance from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.