Company visits and mutual fund performance: new evidence on managerial skills

Yanan Li () and Wenjun Wang ()
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Yanan Li: Beijing Normal University
Wenjun Wang: Agricultural Bank of China

Journal of Asset Management, 2022, vol. 23, issue 6, No 4, 504-521

Abstract: Abstract This study shows that the use of private information obtained during company visits is related to managerial skills. We construct a novel measure of a mutual fund’s capability of using such private information by considering the overlap between its stockholdings and its site visits. We find that the allocation of stocks of visited companies in a fund portfolio significantly improves its performance. The impact is more pronounced for mutual funds that hold relatively neglected stocks or stocks with inadequate information disclosure. Our findings suggest that communications with company managers provide significant information advantages for fund managers.

Keywords: Mutual fund performance; Company visit; Private information (search for similar items in EconPapers)
JEL-codes: G12 G14 G23 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1057/s41260-022-00273-1

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