A study of analyst-run mutual funds: The abilities and roles of buy-side analysts

Gjergji Cici and Claire Rosenfeld

Journal of Empirical Finance, 2016, vol. 36, issue C, 8-29

Abstract: We assess the abilities and the role of buy-side analysts within mutual fund families by analyzing mutual funds managed by buy-side analysts from fourteen fund families. Buy-side analysts exhibit investment abilities by realizing positive style- and risk-adjusted returns and generating superior risk-return tradeoffs. Analysts' skills have a positive impact on the performance of funds from the same family. Although some managers benefit from closely following their buy-side analysts' ideas, research generated by these analysts is generally being underutilized by affiliated managers. The underutilization is consistent with longer-tenured managers choosing to forgo some of the analysts' ideas due to career considerations.

Keywords: Mutual funds; Buy-side analysts; Performance evaluation; Career effects (search for similar items in EconPapers)
JEL-codes: D23 D83 G23 L22 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:36:y:2016:i:c:p:8-29

DOI: 10.1016/j.jempfin.2015.12.004

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