CREATES

Spillovers of Senior Mutual Fund Managers’ Capital Raising Ability

Research output: Working paper/Preprint Working paperResearch

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Spillovers of Senior Mutual Fund Managers’ Capital Raising Ability. / Xu, Yue.

Aarhus : Institut for Økonomi, Aarhus Universitet, 2022.

Research output: Working paper/Preprint Working paperResearch

Harvard

Xu, Y 2022 'Spillovers of Senior Mutual Fund Managers’ Capital Raising Ability' Institut for Økonomi, Aarhus Universitet, Aarhus.

APA

Xu, Y. (2022). Spillovers of Senior Mutual Fund Managers’ Capital Raising Ability. Institut for Økonomi, Aarhus Universitet. CREATES Research Papers No. 2022-03

CBE

Xu Y. 2022. Spillovers of Senior Mutual Fund Managers’ Capital Raising Ability. Aarhus: Institut for Økonomi, Aarhus Universitet.

MLA

Xu, Yue Spillovers of Senior Mutual Fund Managers’ Capital Raising Ability. Aarhus: Institut for Økonomi, Aarhus Universitet. (CREATES Research Papers; Journal number 2022-03). 2022., 41 p.

Vancouver

Xu Y. Spillovers of Senior Mutual Fund Managers’ Capital Raising Ability. Aarhus: Institut for Økonomi, Aarhus Universitet. 2022 Jan 20.

Author

Xu, Yue. / Spillovers of Senior Mutual Fund Managers’ Capital Raising Ability. Aarhus : Institut for Økonomi, Aarhus Universitet, 2022. (CREATES Research Papers; No. 2022-03).

Bibtex

@techreport{ff660cd43a044a69a2016dfc33589b03,
title = "Spillovers of Senior Mutual Fund Managers{\textquoteright} Capital Raising Ability",
abstract = "This paper documents a sizeable spillover effect of senior mutual fund managers{\textquoteright} capital raising ability on their colleagues. I find that when a junior fund manager has new senior colleagues in a fund, the junior manager{\textquoteright}s other funds also have substantial capital inflows. To identify the cause of these capital inflows, I extend the active investment skill in the Berk and Green model with capital raising ability. Empirical evidence shows that a fund manager{\textquoteright}s performance in other funds (measured by net or gross alphas) decreases significantly after having new senior colleagues, and value added from the active investment does not increase. This is consistent with a spillover effect of senior managers{\textquoteright} capital raising ability rather than active investment skill.",
keywords = "Mutual Fund Managers, Management Spillovers, Capital Raising, Investment Skill, Capital Flows",
author = "Yue Xu",
year = "2022",
month = jan,
day = "20",
language = "English",
series = "CREATES Research Papers",
publisher = "Institut for {\O}konomi, Aarhus Universitet",
number = "2022-03",
type = "WorkingPaper",
institution = "Institut for {\O}konomi, Aarhus Universitet",

}

RIS

TY - UNPB

T1 - Spillovers of Senior Mutual Fund Managers’ Capital Raising Ability

AU - Xu, Yue

PY - 2022/1/20

Y1 - 2022/1/20

N2 - This paper documents a sizeable spillover effect of senior mutual fund managers’ capital raising ability on their colleagues. I find that when a junior fund manager has new senior colleagues in a fund, the junior manager’s other funds also have substantial capital inflows. To identify the cause of these capital inflows, I extend the active investment skill in the Berk and Green model with capital raising ability. Empirical evidence shows that a fund manager’s performance in other funds (measured by net or gross alphas) decreases significantly after having new senior colleagues, and value added from the active investment does not increase. This is consistent with a spillover effect of senior managers’ capital raising ability rather than active investment skill.

AB - This paper documents a sizeable spillover effect of senior mutual fund managers’ capital raising ability on their colleagues. I find that when a junior fund manager has new senior colleagues in a fund, the junior manager’s other funds also have substantial capital inflows. To identify the cause of these capital inflows, I extend the active investment skill in the Berk and Green model with capital raising ability. Empirical evidence shows that a fund manager’s performance in other funds (measured by net or gross alphas) decreases significantly after having new senior colleagues, and value added from the active investment does not increase. This is consistent with a spillover effect of senior managers’ capital raising ability rather than active investment skill.

KW - Mutual Fund Managers

KW - Management Spillovers

KW - Capital Raising

KW - Investment Skill

KW - Capital Flows

M3 - Working paper

T3 - CREATES Research Papers

BT - Spillovers of Senior Mutual Fund Managers’ Capital Raising Ability

PB - Institut for Økonomi, Aarhus Universitet

CY - Aarhus

ER -