We propose a new holding horizon measure of active management and examine its relation with fund performance. Our measure identifies long-horizon funds as having higher future long-term alphas and owning stocks with superior long-term fundamentals. Such funds supply skills, but these skills only...

We study an investor¡¯s decision to switch from active portfolio management to passive management. This problem is mathematically modelled by a mixture of a consumption-portfolio selection problem and an optimal stopping problem. We assume that the investor has stochastic differential utility...

We consider a consumption and investment problem where an investor¡¯s investment opportunity gets enlarged when she becomes rich enough, i.e., when her wealth touches a critical level. We derive optimal consumption and investment rules assuming that the investor has a time-separable von...