Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22426
Authors: 
Menkhoff, Lukas
Schmidt, Ulrich
Year of Publication: 
2005
Series/Report no.: 
Diskussionspapiere des Fachbereichs Wirtschaftswissenschaften, Universität Hannover 314
Abstract: 
Our questionnaire survey finds that most fund managers rely on the strategies of buy-&-hold, momentum and contrarian trading. These strategies are typically applied mutually. Their use is rooted in the attributes and beliefs of the respective fund managers: buy-&-hold traders behave fundamentally oriented, risk averse and less (over)confident than others. Momentum traders appear as the least risk averse professionals going aggressively with the trend. Contrarian traders, however, show signs of overconfidence and peculiar risk aversion, both indicating difficulties in successful strategy implementation. The revealed behavioural patterns are not easily reconciled with efficient markets.
Subjects: 
market efficiency
buy-&-hold strategy
momentum trading
contrarian strategy
behavioural finance
JEL: 
G14
G23
Document Type: 
Working Paper

Files in This Item:
File
Size
164.16 kB





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