Making a difference: European mutual funds distinctiveness and peers’ performance

Sophie Béreau (), Jean-Yves Gnabo and Henri, Vanhomwegen
Additional contact information
Henri, Vanhomwegen: Université de Namur

No 2019015, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Skilled managers of equity mumtual funds can develop innovoative strategies to outsmart their style peers. We unveil various causes of distinct investment strategies and test whether they materialize into outperformance of peer competitors. We frame our paper on European funds and propose a novel procedure to measure and test the impact of strategy distinctiveness while dealing with endogenous style classification and sample noise in peers’ comparisons of performance. We find a strong, robust and positive impact of ostrategy distinctiveness on financial performance. Yet, the marginal effect decreases with the level of distinctiveness.

Keywords: European equity mutual funds; distinctiveness; commonality; peer performance; adaptivei clustering (search for similar items in EconPapers)
JEL-codes: G11 G12 G23 (search for similar items in EconPapers)
Date: 2019-07-10
New Economics Papers: this item is included in nep-fmk and nep-ore
References: Add references at CitEc
Citations:

Downloads: (external link)
https://sites.uclouvain.be/core/publications/coredp/coredp2019.html (application/pdf)

Related works:
Journal Article: Making a Difference: European Mutual Funds Distinctiveness and Peers’ Performance (2020)
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:cor:louvco:2019015

Access Statistics for this paper

More papers in LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Alain GILLIS ().