Do Local Investors Know More? Evidence from Mutual Fund Location and Investments

Johan Sulaeman ()
Additional contact information
Johan Sulaeman: Edwin L. Cox School of Business, Southern Methodist University, PO Box 750333, Dallas, TX 75275, USA

Quarterly Journal of Finance (QJF), 2014, vol. 04, issue 02, 1-39

Abstract: This study finds that actively managed mutual funds do not display abnormal superior performance in local stocks relative to their own performance in distant stocks. However, the trading behavior of these funds is consistent with a widespread perception that local funds have an informational advantage. This perception is not only held by the local fund managers themselves (who tend to trade more aggressively), but also shared by distant managers (who tend to mimic local managers).

Keywords: Mutual funds; local investors (search for similar items in EconPapers)
Date: 2014
References: View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2010139214500104
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:qjfxxx:v:04:y:2014:i:02:n:s2010139214500104

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2010139214500104

Access Statistics for this article

Quarterly Journal of Finance (QJF) is currently edited by Fernando Zapatero

More articles in Quarterly Journal of Finance (QJF) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().