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The Use of Trading Strategies by Fund Managers: Some First Survey Evidence Author info | Abstract | Publisher info | Download info | Related research | Statistics Menkhoff, Lukas
Schmidt, Ulrich
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Our questionnaire survey finds that most fund managers rely on the strategies of buy-and-hold, momentum and contrarian trading. These strategies are typically applied mutually. Their use is rooted in the attributes and beliefs of the respective fund managers: buy-and-hold traders behave fundamentally oriented, risk averse and less (over)confident than others. Momentum traders appear as the least risk averse professionals going aggressively with the trend. Contrarian traders, however, show signs of overconfidence and peculiar risk aversion, both indicating difficulties in successful strategy implementation. The revealed behavioural patterns are not easily reconciled with efficient markets.
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Paper provided by Universität Hannover, Wirtschaftswissenschaftliche Fakultät in its series Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover with number
dp-314.
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Length: 25 pages
Date of creation: Apr 2005Date of revision:
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For technical questions regarding this item, or to correct its listing, contact: (Dietrich, Karl).
Keywords: market efficiency ; buy-and-hold strategy ; momentum trading ; contrarian strategy ; behavioural finance ; Other versions of this item:
Find related papers by JEL classification: G23 - Financial Economics - - Financial Institutions and Services - - - Pension Funds; Other Private Financial Institutions G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies
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