No Place Like Home: Familiarity in Mutual Fund Manager Portfolio Choice

• 成果类型: Article
• 署名作者: Pool, Veronika K.; Stoffman, Noah; Yonker, Scott E.
• 署名单位: Indiana University System; Indiana University Bloomington; IU Kelley School of Business
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhs075
• 发表日期: 2012
• 页码: 2563
• 关键词: individual investors; BIAS; performance; INVESTMENT; geography; location; matter

摘要

We show that familiarity affects the portfolio decisions of mutual fund managers. Controlling for fund location, funds overweight stocks from their managers' home states by 12% compared with their peers. In team-managed funds, home-state overweighting is 37% larger than the fund location effect. The home-state bias is stronger if the manager is inexperienced, is resource-constrained, or spent more time in his home state. Home-state stocks do not outperform other holdings, confirming that home-state investments are not informed. The overweighting also leads to excessively risky portfolios.