Do fixed income mutual fund managers have managerial skills?

Ding Du, Zhaodan Huang, Peter J. Blanchfield

Research output: Contribution to journalArticle

20 Scopus citations

Abstract

Motivated by Berk and Green [Berk, J., & Green, R. (2004). Mutual fund flows and performance in rational markets. Journal of Political Economy, 112, 1269-1295] and Chevalier and Ellison [Chevalier, J., & Ellison, G. (1999). Career concerns of mutual fund managers. Quarterly Journal of Economics, 114, 389-432] who show theoretically that performance persistence may be short-lived, we complement Bollen and Busse [Bollen, N., & Busse, J. A. (2004). Short-term persistence in mutual fund performance. Review of Financial Studies, 18, 569-597] and examine performance persistence in high-quality corporate-bond mutual funds over short horizons. Empirically, we find supporting evidence of performance persistence over shorter horizons. Our empirical tests also suggest that the performance persistence we document may be at least partly due to managerial skills.

Original languageEnglish (US)
Pages (from-to)378-397
Number of pages20
JournalQuarterly Review of Economics and Finance
Volume49
Issue number2
DOIs
StatePublished - May 1 2009
Externally publishedYes

Keywords

  • Corporate bond
  • Managerial skills
  • Mutual fund performance

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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