We study how hedge fund performance is related to the presence of mutual funds operating in the same asset class. We argue that hedge funds are able to exploit the constraints of the mutual funds related to both the high correlation between flows and value of investment and their tendency to...

We study how managers of funds created to invest for the long run behave when shielded from liquidity constraints and their investors' short-term needs. Using the universe of US target-date funds (TDFs), we document that asset managers exploit lower investor attention to deliver lower...

We study whether mutual funds systematically manage downside risk of their portfolios in ways that improve their performance. We find that actively managed mutual funds on average possess positive downside risk timing ability. Funds investing in large-cap and value stocks have stronger downside...

We study whether mutual funds systematically manage downside risk of their portfolios in ways that improve their performance. We find that mutual funds on average possess positive downside risk timing ability. Funds investing in large-cap and value stocks have stronger downside risk timing...

Performance patterns involving funds managed by management companies both to be sold and recently sold suggest their careful strategic management. Intertemporal patterns in cross-subsidization in the year leading to the sale deteriorate the performance of funds from the top of relative rankings...