No Place Like Home : Familiarity in Mutual Fund Manager Portfolio Choice

We show that familiarity affects the portfolio decisions of mutual fund managers. Controlling for fund location, funds overweight stocks from their managers' home states by 12% compared to their peers. In team-managed funds, home-state overweighting is 37% larger than the fund location effect. The home-state bias is stronger if the manager is inexperienced, is resource-constrained, or spent more time in his home state. Home-state stocks do not outperform other holdings, confrming that home-state investments are not informed. The overweighting also leads to excessively risky portfolios

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Year of publication:	2018
Authors:	Pool, Veronika Krepely
Other Persons:	Stoffman, Noah (contributor) ; Yonker, Scott E. (contributor)
Publisher:	[2018]: [S.l.] : SSRN
Subject:	Portfolio-Management \| Portfolio selection \| Investmentfonds \| Investment Fund \| Anlageverhalten \| Behavioural finance

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Extent:	1 Online-Ressource (50 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 22, 2012 erstellt
Other identifiers:	10.2139/ssrn.1844464 [DOI]
Classification:	G11 - Portfolio Choice ; G29 - Financial Institutions and Services. Other
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012940448