We study whether fund families efficiently allocate their fund managers to different market segments. Whether a fund … employed. We show that in the more efficient investment grade bond fund market segment, fund managers cannot translate higher … skill into higher fund alpha. In contrast, skilled managers can generate higher alpha in the less efficient high yield bond …

We show that fund families allocate their fund managers to different market segments such that their skill is rewarded … she works. Even skilled managers can generate alpha only if the market segment is inefficient. Fund families take this … relation between skill and inefficiency into account and allocate their best managers to the least efficient market segment …

-standarddeviation increase in ownership predicts a 1.6 percent increase in alpha in the following year. Fund managers who are required to … activity in line with the view that higher ownership aligns interests of managers with those of shareholders and induces higher …

outperform traditional mutual funds. Most interesting, this superior performance is largely driven by managers with experience in …

managers with "better" ability self-select into joining MS funds and the competition among MS funds results in the rents from …, flexibility, and fee structure between MS funds and FOFs, our results suggest that self-selection by managers with superior …

To optimally utilize their labor, fund families need to match their portfolio managers' skills with the job … requirements of different funds. Fund families make it possible for their managers to try out different funds in a learning …-by-trying fashion until they find their best match. After they have reached their best match, managers operate at higher productivity …

unique features of the mutual fund industry, we identify instances when this matching happens for fund managers and study its … consequences. After fund managers are matched, they improve their risk-adjusted performance significantly. Fund companies use this … information to maximize company value by reallocating existing and directing new capital to their matched managers and by …