Investor sentiment and mutual fund stock picking
Source of Publication
Applied Economics Letters
The active share of mutual funds drops significantly when investor sentiment is high, indicating that fund managers reduce their active stock selection and stay closer to their benchmarks during such periods. Our evidence is consistent with fund managers being sentiment-prone – challenging the conventional view that it is only the preponderance of retail investors during high sentiment periods that allows sentiment to influence asset prices.
Taylor & Francis
Mutual fund, Stock picking, Active share, Investor sentiment, Stock return
Chue, Timothy K. and Mian, G. Mujtaba, "Investor sentiment and mutual fund stock picking" (2021). All Works. 4364.
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