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The investment abilities of mutual fund buy-side analysts

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  • Cici, Gjergji
  • Rosenfeld, Claire

Abstract

We investigate the abilities of buy-side analysts by analyzing nontraditional mutual funds that are exclusively managed by in-house analysts rather than traditional portfolio managers. Analysts exhibit stronger general and job-specific investment abilities than traditional managers from within and outside the fund family. Using holdings of analystrun funds as a proxy for the analysts' best ideas, we document that more-skilled portfolio managers rely on analysts' ideas from the same family to a lesser extent than less-skilled managers. We find that analysts' abilities matter in that they are positively related to the future performance of other funds within the same family.

Suggested Citation

  • Cici, Gjergji & Rosenfeld, Claire, 2012. "The investment abilities of mutual fund buy-side analysts," CFR Working Papers 12-07, University of Cologne, Centre for Financial Research (CFR).
    • Handle: RePEc:zbw:cfrwps:1207
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    References listed on IDEAS

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    Cited by:

    1. Trapp, Monika & Wewel, Claudio, 2012. "Transatlantic systemic risk," CFR Working Papers 12-10, University of Cologne, Centre for Financial Research (CFR).

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