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Family competition via divergence in the trading of funds

Author

Listed:
  • Andreu, Laura
  • Gimeno, Ruth
  • Serrano, Miguel

Abstract

We examine the influence of managerial structures and characteristics on the level of trading divergence among fund families as well as their effects on the subsequent performance of those families. Fund families with fewer interactions between their funds and managers tend to diverge more in their trading decisions. We find a positive influence of this divergence on the performance of fund families not only in competitive but also in cooperative environments. This finding shows that if cooperation leads a fund family to make different trading decisions than their competitors, they have better results.

Suggested Citation

  • Andreu, Laura & Gimeno, Ruth & Serrano, Miguel, 2023. "Family competition via divergence in the trading of funds," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007243
    DOI: 10.1016/j.frl.2022.103548
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    References listed on IDEAS

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    More about this item

    Keywords

    Competition; Cooperation; Fund family; Managerial characteristics; Mutual funds; Performance consequences; Trading divergence;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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