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Look For People, Not For Alpha: Mutual Funds Success And Managerial Intellectual Capital

Author

Listed:
  • Iuliia N. Naidenova

    (National Research University Higher School of Economics)

  • Petr A. Parshakov

    (National Research University Higher School of Economics)

  • Marina A. Zavertiaeva

    (National Research University Higher School of Economics)

  • Eduardo Tome

    (Universidade Europeia)

Abstract

This is the first paper to explore which characteristics of Russian fund managers are connected with a higher abnormal return (measured by Jensen’s alpha) and risk (beta) for mutual funds. While only some fund managers publish biographic sketches we use the Heckman procedure to control for self-selection issues. The results support the idea that individual characteristics indicate the possibility to earn abnormal alpha. The relationship between both fund performance measures and manager experience has inverted U-shape. The results can be used as a simple screening system that helps to choose a mutual fund to invest in without sophisticated calculations

Suggested Citation

  • Iuliia N. Naidenova & Petr A. Parshakov & Marina A. Zavertiaeva & Eduardo Tome, 2015. "Look For People, Not For Alpha: Mutual Funds Success And Managerial Intellectual Capital," HSE Working papers WP BRP 42/FE/2015, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:42/fe/2015
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    References listed on IDEAS

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    Cited by:

    1. Rina Rachmawati & Sugeng Wahyudi & Irene Rini Demi Pangestuti & Najmudin, 2020. "Funds Manager and Mutual Funds Characteristics on Mutual Funds Performance: Empirical Evidence of Equity Mutual Funds in Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 77-87, April.
    2. Anna Bykova & Dennis Coates, 2020. "Does Experience Matter? Salary Dispersion, Coaching, And Team Performance," Contemporary Economic Policy, Western Economic Association International, vol. 38(1), pages 188-205, January.
    3. Zunera Shaukat & Ahmad Shahzad, 2019. "Impact of Portfolio Strategies on Portfolio Performance and Risk," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 10(1), pages 73-86, January.
    4. Farrukh Naveed & Muhammad Ishfaq & Zahid Maqbool, 2021. "The downside risk of mutual funds: Does the quality of corporate governance matter? Empirical evidence from Pakistan," Journal of Asset Management, Palgrave Macmillan, vol. 22(5), pages 376-388, September.

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    More about this item

    Keywords

    Russia; equity funds; individual intellectual capital; Jensen’s alpha;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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