Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/102660 
Year of Publication: 
2014
Series/Report no.: 
CFR Working Paper No. 14-11
Publisher: 
University of Cologne, Centre for Financial Research (CFR), Cologne
Abstract: 
We document that prior work experience of mutual fund managers outside of the asset management industry is valuable from an investment perspective in that it provides managers with a stock picking and industry timing advantage. Fund managers' stock picks from industries where they previously worked outperform stock picks from their non-experience industries by about three percent annually. Also, fund managers are better at timing the returns of their experience industries than those of other industries. Moreover, the investment value of managers' prior work experience is greater for industries comprised of stocks that are harder to value.
Subjects: 
Investor Learning
Investor Experience
Mutual funds
JEL: 
G23
D83
J24
Document Type: 
Working Paper

Files in This Item:
File
Size
963.94 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.