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Outperformance: Does Managerial Specialization Pay?

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  • Piet Eichholtz
  • Hans Op t Veld
  • Mark Schweitzer

Abstract

In this study, we investigate whether managerial specialization leads to significant outperformance of investment trusts. In the existing literature on the performance of mutual funds one of the unsolved puzzles is the persistence of outperformance. We argue that specialization is one of the factors determining this persistence. We use data on Real Estate Investment Trusts since managerial specialization of these companies can be measured in a straightforward way. We look at the effects of specialization by property type and by geographic region and find that property specialization leads indeed to an outperformance of the market, whereas geographical specialization leads to underperformance. This paper was presented at the Financial Institutions Center's conference on Performance of Financial Institutions, May 8-10, 1997.

Suggested Citation

  • Piet Eichholtz & Hans Op t Veld & Mark Schweitzer, "undated". "Outperformance: Does Managerial Specialization Pay?," Center for Financial Institutions Working Papers 97-31, Wharton School Center for Financial Institutions, University of Pennsylvania.
    • Handle: RePEc:wop:pennin:97-31
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    File URL: http://fic.wharton.upenn.edu/fic/papers/97/schweitzer.pdf
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    References listed on IDEAS

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    Cited by:

    1. Piao, Xiaorui & Mei, Bin & Xue, Yuan, 2016. "Comparing the financial performance of timber REITs and other REITs," Forest Policy and Economics, Elsevier, vol. 72(C), pages 115-121.

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