We show that Morningstar has given higher ratings to active domestic equity funds which are underfunded relative to their Berk&Green (2004) model-predicted optimal fund size and lower ratings to overfunded funds. Investors chase ratings, so they have unwittingly moved capital out of overfunded...

Are private equity fund managers that earn persistently higher returns truly skilled, or are they just lucky? Using a novel approach that overcomes concerns about the integrity of both the data and the empirical methods that have been commonly used in prior studies of private equity persistence...

A number of private equity (PE) fund management firms (GPs) have sought listings on public stock exchanges; also, investors, regulators, and PE firms, are showing interest in permanent PE investment capital raised on public markets. However concerns have been expressed that both of these...

We propose an enhanced measure of optimal actively-managed mutual fund size that allows optimal fund size to vary over time. Using the new measure We find that value creation/destruction is evenly balanced between funds whose funding status is greater than (overfunded) or less than (underfunded)...