This paper provides new evidence supporting the rationality of closed-end fund discounts by analyzing the time-series dynamics of individual fund discounts and their relation to portfolio performance and manager turnover. We show that discount changes reflect rational investor learning about...

Based on the records of 1183 individual fund managers from 1985 to 2010, we investigate the compensation and discipline mechanisms in the closed-end fund industry and their implications for manager performance and fund premium. We find that managers generating high surplus, as proxied by fund...

We examine the dynamics of assets under management (AUM) and management fees at the portfolio manager level in the closed-end fund industry. We find that managers capitalize on good past performance and favorable investor perception about future performance, as reflected in fund premiums,...

We develop a model of performance evaluation and fund flows for mutual funds in a family. Family performance has two effects on the estimate of a member fund's skill and its inflows: a positive common-skill effect, and a negative correlated-noise effect. The overall spillover is either positive...

We construct measures of mutual fund uniqueness using cluster analysis of fund returns. We find that fund uniqueness persists over time, and is higher for more actively managed funds. More unique funds charge higher fees, but they do not deliver better net-of-fee performance. Fund uniqueness...

We examine the dynamics of assets under management (AUM) and management fees at the portfolio manager level in the closed-end fund industry. We find that managers capitalize on good past performance and favorable investor perceptions about future performance, as reflected in fund premiums,...

We develop a continuous-time Bayesian learning model to evaluate the composite skill of a mutual fund manager and a fund family. Our model estimates the composite skill of each fund as a function of its own performance and family performance. We show two competing effects of the family...