IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v7y2017i6p611-622id1581.html
   My bibliography  Save this article

The Performance Persistence of Winner Fund Managers - Evidence from the Timing and Stock Picking Ability

Author

Listed:
  • Ying-Fen Fu
  • Hai-Ching Liu

Abstract

This study aims to investigate the persistence of timing and stock picking ability of “winner fund managers” instead of winner funds. The sample of this study is the previous and next equity funds which the same fund managers manage in Taiwan. we measure the ranking of timing and stock picking ability of fund managers for the period they manage the specific fund. The result shows that for the whole fund managers, the successive two funds they manage are performance persistent. Moreover, the stock picking ability of the two funds they manage is persistent no matter the two funds belonging to the same fund company or not. Regarding the winner fund manager, we find no persistence of return, timing ability and stock picking ability. No matter the winner fund managers change the jobs to the other fund companies or not, the next funds the winner fund managers manage are not timing and stock picking ability persistent. The result of logistic regression demonstrates that the probability of becoming timing or stock picking winners of the next funds which the timing or stock picking winner managers manage is not significantly higher than other funds. The result indicates that investors do not necessarily follow the timing and stock picking winner fund managers. The performance of the next funds which the winner fund managers manage may reverse especially for the successive two funds belonging to the same fund company. Little literature investigates the issue regarding the fund timing and stock picking performance from the viewpoint of “fund managers”. The results of this study provide investing implications for fund investors when they are choosing funds.

Suggested Citation

  • Ying-Fen Fu & Hai-Ching Liu, 2017. "The Performance Persistence of Winner Fund Managers - Evidence from the Timing and Stock Picking Ability," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 7(6), pages 611-622.
  • Handle: RePEc:asi:aeafrj:v:7:y:2017:i:6:p:611-622:id:1581
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1581/2284
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pi‐Hsia Hung & Donald Lien & Yun‐Ju Chien, 2020. "Portfolio concentration and fund manager performance," Review of Financial Economics, John Wiley & Sons, vol. 38(3), pages 423-451, July.
    2. Huimin Peng, 2020. "Holding-Based Evaluation upon Actively Managed Stock Mutual Funds in China," Papers 2004.05322, arXiv.org, revised Jul 2020.
    3. Hung, Pi-Hsia & Lien, Donald & Kuo, Ming-Sin, 2020. "Window dressing in equity mutual funds," The Quarterly Review of Economics and Finance, Elsevier, vol. 78(C), pages 338-354.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:7:y:2017:i:6:p:611-622:id:1581. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.