Baker, Malcolm; Litov, Lubomir; Wachter, Jessica A.; … - In: Journal of Financial and Quantitative Analysis 45 (2010) 05, pp. 1111-1131
Recent research finds that the stocks that mutual fund managers buy outperform the stocks that they sell (e.g., Chen, Jegadeesh, and Wermers (2000)). We study the nature of this stock-picking ability. We construct measures of trading skill based on how the stocks held and traded by fund managers...
