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Are Style Factors exclusive, exhaustive and independent in Spanish Domestic Equity Funds?/¿Son los factores de estilo exclusivos, exhaustivos e independientes en los fondos de inversión españoles de renta variable macional?

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Author Info
FERRUZ AGUDO, LUIS () (University of Zaragoza, Spain, Faculty of Economics and Business Studies, Department of Accounting and Finance. C/ Gran Vía, 2, 50005 – Zaragoza (Spain).)
VICENTE GIMENO, LUIS A. ()
Abstract

This paper is an approach to the management styles followed by Spanish mutual funds investing in domestic equities. The methodology applied is based on Sharpe’s Style Analysis proposed in 1992. Sharpe establishes three conditions for the explanatory factors used in this method if the results are to be meaningful: 1)exclusive benchmarks, 2)exhaustive benchmarks and 3)independent benchmarks The results show that the benchmarks used in the more exhaustive models are not sufficiently independent in the Spanish case to obtain statistically significant management styles. Este trabajo es una aproximación a los estilos de gestión desarrollados por los fondos de inversión españoles en renta variable nacional. La metodología aplicada está basada en el análisis de estilos propuesto por Sharpe en 1992. Sharpe exige tres características a los factores explicativos utilizados en este método con el objeto de que los resultados sean significativos: 1) exclusividad, 2) exhaustividad e 3) independencia. Los resultados muestran que para el caso español, los índices utilizados en los modelos más exhaustivos no son lo suficientemente independientes para obtener estilos de gestión estadísticamente significativos.

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Article provided by Estudios de Economía Aplicada in its journal Estudios de Economía Aplicada.

Volume (Year): 23 (2005)
Issue (Month): (Agosto)
Pages: 495-506
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Handle: RePEc:lrk:eeaart:23_2_12

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Related research
Keywords: Style Analysis; Investment Funds; Benchmarks/Análisis de estilos; Fondos de inversión; Índices de referencia.;

Find related papers by JEL classification:
G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
G23 - Financial Economics - - Financial Institutions and Services - - - Pension Funds; Other Private Financial Institutions

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Brown, Stephen J. & Goetzmann, William N., 1997. "Mutual fund styles," Journal of Financial Economics, Elsevier, vol. 43(3), pages 373-399, March. [Downloadable!] (restricted)
    Other versions:
  2. Fung, William & Hsieh, David A, 1997. "Empirical Characteristics of Dynamic Trading Strategies: The Case of Hedge Funds," Review of Financial Studies, Oxford University Press for Society for Financial Studies, vol. 10(2), pages 275-302.
  3. ter Horst, Jenke R. & Nijman, Theo E. & de Roon, Frans A., 2004. "Evaluating style analysis," Journal of Empirical Finance, Elsevier, vol. 11(1), pages 29-53, January. [Downloadable!] (restricted)
    Other versions:
    • Roon.F.A. de, & Nijman, T.E. & Horst, J.R. ter, 2000. "Evaluating style analysis," Discussion Paper 64, Tilburg University, Center for Economic Research. [Downloadable!]
    • de Roon, Frans & Nijman, Theo E & ter Horst, Jenke, 2002. "Evaluating Style Analysis," CEPR Discussion Papers 3181, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    • Roon, F.A. de & Nijman, T.E. & Werker, B.J.M., 2000. "Evaluating Style Analysis," Research Paper ERS-2000-11-F&A Revision_, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
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