This paper documents the tendency of mutual fund managers to follow analyst recommendation revisions when they trade stocks, and the impact of analyst revisioninduced mutual fund herds on stock prices. We find that mutual fund herds follow consensus revisions in analyst recommendations,...

type="main" <title type="main">ABSTRACT</title> <p>We examine proprietary research produced by buy-side analysts working for a large fund management company. We find that the buy-side research has investment value for a one-year horizon, and the analysts producing this research exhibit differential ability that tends to...</p>