We study how mutual fund managers gain an edge in selecting stocks in an era of globalization. We use textual analysis to construct a new measure that captures a mutual fund's offshore exposure concentration through holding U.S. multinational firms. The proposed offshore concentration index...

I collect a registry-based dataset on the personal portfolios of Swedish mutual fund managers. The managers who invest personal money in the very same funds they professionally manage outperform the managers who do not. The main results are consistent with a Berk and Green (2004) equilibrium in...

We apply methods designed to measure mutual fund skill to a cross-section of traded funds that should not exhibit managerial portfolio selection skill: index funds. Surprisingly, these tests imply index fund skill exists, is persistent, and is in similar proportion as in active funds. We use the...

I collect a registry-based dataset on the personal portfolios of Swedish mutual fund managers. The managers who invest (a lot of) personal money in their own funds generate positive abnormal returns. Some managers are betting on their best ideas by investing personal money in individual...

We distinguish luck from skill in fund portfolios of differing activeness by applying bootstrap simulations. Bootstrapping is important as heterogeneous risk taking according to the activeness of a fund's strategies can bias standard significance tests, causing non-normalities in the...

This paper investigates what mutual fund managers learn from senior colleagues by focusing on managers managing multiple funds. I find that having a new senior colleague significantly increases a fund manager's revenues from other funds that she manages. To explore the sources of this increase...

Active fund managers are skilled and, on average, have used their skill to generate about $3.2 million per year. Large cross-sectional differences in skill persist for as long as ten years. Investors recognize this skill and reward it by investing more capital in funds managed by better...

As a country with the largest Muslim majority population in the world, Indonesia is the most potential target market for sharia-based products. This is indicated by the increasing public enthusiasm for various sharia investment products. There are two aims of this study. First aim is to evaluate...

We find that mutual fund investors care about the uncertainty associated with the fund's skills, which is neglected by the existing literature. We propose a measure named Confidence in the Fund's Skills (CFS) to investigate this question empirically. CFS has a significantly positive impact on...