Fund manager skill: selling matters more!

Tosun, Onur Kemal ORCID: https://orcid.org/0000-0003-2551-1408, Jin, Liang, Taffler, Richard and Eshraghi, Arman ORCID: https://orcid.org/0000-0002-7406-1725 2022. Fund manager skill: selling matters more! Review of Quantitative Finance and Accounting 59 (3) , pp. 969-994. 10.1007/s11156-022-01065-9

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Abstract

We examine whether mutual fund managers have differential skill in the buy and sell domains. Although they have characteristic-timing ability in aggregate, we show they exhibit asymmetric ability when buying and selling. Our key finding is that fund managers with superior selling ability are significantly better at buying stocks and, as a result, earn significantly higher aggregate returns. However, fund managers who buy stocks successfully do not necessarily have parallel selling skills, leading to lower returns overall. Thus, we provide strong evidence that selling skill is the key determinant of overall mutual fund timing performance.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Additional Information:	License information from Publisher: LICENSE 1: URL: http://creativecommons.org/licenses/by/4.0/, Type: open-access
Publisher:	Springer
ISSN:	0924-865X
Date of First Compliant Deposit:	12 September 2022
Date of Acceptance:	18 April 2022
Last Modified:	06 May 2023 01:53
URI:	https://orca.cardiff.ac.uk/id/eprint/152499

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