The authors empirically investigate the investment impact of commonly used manager
selection heuristics that involve redeploying assets from underperforming to outperforming …

Many empirical studies on mutual fund performance have led investors to believe that a
negative relationship exists between expenses and performance. This article shows how there …

This article develops a theory that the intensity of investor monitoring explains much of the
relationship between expenses and performance. I instrument for investor monitoring through …

Purpose – The purpose of this paper is to explore the impact of S&P 500 index fund money
flow on the valuations of companies that are constituents of the index and those that are not. …

It is important for financial planners to understand what drives risk tolerance as it directly
influences the portfolio allocation preference of clients. Possible explanations for determinants …

In 2012, the author published a literature review in the Journal of Financial Service Professionals
on the characteristics of actively managed mutual funds that are indicative of future …

Short-term redemption fees may prevent investors from frequently trading in and out of mutual
funds, which results in an implicit wealth transfer from long-to short-term fund investors. …

This paper presents a new measure of active fund performance that evaluates funds in a
manner which is aligned with what investors seek to optimize: utility. Unlike the information ratio…

This study examines the risk-adjusted performance of actively managed mutual funds
versus passively managed mutual funds between 1991 and 2019 and finds that there is no …

In this month's column, the author points out an econometric problem with the majority of the
empirical studies that have documented a negative expense-performance relationship and …