Please use this identifier to cite or link to this item:

Overconfidence among professional investors: Evidence from mutual fund managers

Pütz, Alexander
Ruenzi, Stefan
Year of Publication: 
Series/Report no.: 
CFR Working Paper 08-08
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.
Professional Investors
Behavioral Biases
Mutual Funds
Is replaced by the following version: 
Document Type: 
Working Paper

Files in This Item:
There are no files associated with this item.
The document was removed on behalf of the author(s)/ the editor(s) on: February 13, 2013

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