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http://hdl.handle.net/10419/41362
  
Title:Overconfidence among professional investors: Evidence from mutual fund managers
Authors:Pütz, Alexander
Ruenzi, Stefan
Issue Date:2009
Series/Report no.:CFR Working Paper 08-08
Abstract:We examine overconfidence among equity mutual fund managers. While overconfidence has been extensively documented among retail investors, evidence from professional investors is scarce. Consistent with theories of overconfidence, we find that fund managers trade more after good past performance. The higher trading activity after good performance is driven by individual portfolio performance, while the market performance has no significant impact. We find no spillover effects from one good performing fund on the turnover ratios of the other funds the same manager manages, suggesting that managerial overconfidence is task-specific. Our results are not consistent with an increase in trading activity by fund managers when rational Bayesian learning has informed them about their abilities.
Subjects:Professional Investors
Overconfidence
Behavioral Biases
Mutual Funds
JEL:D83
G10
G12
Is replaced by the following version:http://hdl.handle.net/10419/70117
Document Type:Working Paper
Appears in Collections:CFR Working Papers, Centre for Financial Research (CFR), Universität Köln

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