Picking Winners? Investment Consultants' Recommendations of Fund Managers

• 成果类型: Article
• 署名作者: Jenkinson, Tim; Jones, Howard; Martinez, Jose Vicente
• 署名单位: University of Oxford; Center for Economic & Policy Research (CEPR); University of Connecticut
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12289
• 发表日期: 2016
• 页码: 2333-2369
• 关键词: consistent covariance-matrix; performance; industry; RISK; heteroskedasticity; persistence; analysts; returns; FLOWS

摘要

Investment consultants advise institutional investors on their choice of fund manager. Focusing on U.S. actively managed equity funds, we analyze the factors that drive consultants' recommendations, what impact these recommendations have on flows, and how well the recommended funds perform. We find that investment consultants' recommendations of funds are driven largely by soft factors, rather than the funds' past performance, and that their recommendations have a significant effect on fund flows. However, we find no evidence that these recommendations add value, suggesting that the search for winners, encouraged and guided by investment consultants, is fruitless.