Interpersonal heterogeneity in risk attitudes is a regular feature of experimental data on decision making under risk. Despite a growing consensus on the use of the random coefficient or hierarchical model to accommodate this heterogeneity, there is a burgeoning Bayesian-classical divide...

Using data from the U.S. mutual fund market, we study the nexus of the fund’s ambiguity exposure, risk-adjusted performance, and flows. Our metric of ambiguity exposure builds on theoretical development in the asset pricing implications of the smooth ambiguity model. We find that risk-adjusted...

Over time, new mutual fund volume varies across the states of the economy, and largely clusters in periods where the market is "hot". This phenomenon relates (i) to upcoming IPO-related investment opportunities, which correlate with the economic environment cross-sectionally, and (ii) to fund...

The recent mania of Reddit darling GameStop raises questions about social media’s impact on the behaviours of institutional investors such as mutual funds. We examine whether and why mutual funds hold “sentimental” stocks that are heavily mentioned or with bullish views on social media....