ABSTRACT Using a sample free of survivor bias, I demonstrate that common factors in stock returns and investment expenses almost completely explain persistence in equity mutual funds' mean and risk‐adjusted returns. Hendricks, Patel and Zeckhauser's (1993) “hot hands” result is…
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Mutual fund · Closed-end fund · Open-end fund · Portfolio · Equity (law) · Persistence (discontinuity) · Fund of funds · Economics
# On Persistence in Mutual Fund Performance
> OpenAlex Metadata Hub · https://openalex.org/W2136120210
## Bibliographic
- **DOI:** 10.1111/j.1540-6261.1997.tb03808.x
- **Year:** 1997
- **Citations:** 17042
- **Open Access:** Yes (bronze)
- **License:** —
- **Source:** https://onlinelibrary.wiley.com/doi/pdfdirect/10.1111/j.1540-6261.1997.tb03808.x
## Authors
- Mark M. Carhart
## Abstract
ABSTRACT Using a sample free of survivor bias, I demonstrate that common factors in stock returns and investment expenses almost completely explain persistence in equity mutual funds' mean and risk‐adjusted returns. Hendricks, Patel and Zeckhauser's (1993) “hot hands” result is mostly driven by the one‐year momentum effect of Jegadeesh and Titman (1993) , but individual funds do not earn higher returns from following the momentum strategy in stocks. The only significant persistence not explained is concentrated in strong underperformance by the worst‐return mutual funds. The results do not support the existence of skilled or informed mutual fund portfolio managers.
## Keywords
Mutual fund, Closed-end fund, Open-end fund, Portfolio, Equity (law), Persistence (discontinuity), Fund of funds, Economics, Stock (firearms), Financial economics, Momentum (technical analysis), Business, Econometrics, Monetary economics, Finance, Institutional investor, Corporate governance, Political science, Geography
## Concepts
- Mutual fund
- Closed-end fund
- Open-end fund
- Portfolio
- Equity (law)
- Persistence (discontinuity)
- Fund of funds
- Economics
- Stock (firearms)
- Financial economics
- Momentum (technical analysis)
- Business
- Econometrics
- Monetary economics
- Finance
- Institutional investor
- Corporate governance
- Political science
- Geography
- Geotechnical engineering
- Archaeology
- Market liquidity
- Law
- Engineering
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*Metadata only — full text not imported unless Open Access license permits.*
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Tóm lược học thuật (đã diễn giải): ABSTRACT Using a sample free of survivor bias, I demonstrate that common factors in stock returns and investment expenses almost completely explain persistence in equity mutual funds' mean and risk‐adjusted returns. Hendricks, Patel and Zeckhauser's (1993) “hot hands” result is mostly driven by the one‐year momentum effect of Jegadeesh and Titman (1993) , but individual funds do not earn higher returns from following the momentum strategy in stocks. The only significant persistence not explained is concentrated in strong underperformance by the worst‐return mutual funds. The results do not support the existence of skilled or informed mutual fund portfolio managers.
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Metadata DOI/OA chỉ là rail tham chiếu; nội dung chính là summary, takeaways và ứng dụng thị trường do Content Factory sinh.
1. ABSTRACT Using a sample free of survivor bias, I demonstrate that common factors in stock returns and investment expenses almost completely explain persistence in equity mutual funds' mean and risk‐adjusted returns.
2. Hendricks, Patel and Zeckhauser's (1993) “hot hands” result is mostly driven by the one‐year momentum effect of Jegadeesh and Titman (1993) , but individual funds do not earn higher returns from following the momentum strategy in stocks.
3. The only significant persistence not explained is concentrated in strong underperformance by the worst‐return mutual funds.
4. The results do not support the existence of skilled or informed mutual fund portfolio managers.
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