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Individual Fund Manager Sentiment, Fund Performance and Performance Persistence

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  • Ying-Fen Fu

    (Department of Finance, Tainan University of Technology, Taiwan.)

Abstract

This study contributes to the literature by examining the relation among fund performance, performance persistence and individual fund manager sentiment, rather than the fund industry sentitment. This study employs the turnover rate as the proxy of individual fund manager sentiment. Using the one and two-way sorting methods and the panel data regression analysis, this study finds that the equity funds in Taiwan have performance persistence in the both short and long run. We find the funds with a higher turnover rate (i.e., higher fund managers'sentiment) perform better no matter they are in the winner or loser groups. This phenomenon persists both in the short inverstors should choose winner funds due to their persistence and choose those whose turnover rate is in top 40% of the winners.

Suggested Citation

  • Ying-Fen Fu, 2014. "Individual Fund Manager Sentiment, Fund Performance and Performance Persistence," International Journal of Economics and Financial Issues, Econjournals, vol. 4(4), pages 870-885.
    • Handle: RePEc:eco:journ1:2014-04-15
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    Cited by:

    1. Gehde-Trapp, Monika & Klingler, Linda, 2022. "The effect of sentiment on institutional investors: A gender analysis," CFR Working Papers 22-08, University of Cologne, Centre for Financial Research (CFR).

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    More about this item

    Keywords

    fund performence; performence persistence; sentiment;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G19 - Financial Economics - - General Financial Markets - - - Other
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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