Challenging the Conventional Wisdom on Active Management: A Review of the Past 20 Years of Academic Literature on Actively Managed Mutual Funds

Cremers, K. J. Martijn; Fulkerson, Jon A.; Riley, Timothy B.

doi:10.1080/0015198x.2019.1628555

Cited by 64 publications

(20 citation statements)

References 316 publications

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“…2. An excellent summary of this literature appears in Cremers, Fulkerson, and Riley (2019). (2018) observed, because of index reconstitutions and other factors, the standard benchmark indexes do not necessarily represent the average investor.…”

Section: Resultsmentioning

confidence: 99%

“…Indeed, behavioral factors might explain the mistakes of the experts as well as those of everyone else. Individual active managers might be able to earn abnormal returns, of course, and a growing academic consensus suggests that they can (Cremers et al 2019). However, the fact that active managers are subject to the same behavioral biases as others removes the presumption that active managers necessarily add value.…”

Section: Behavioral Finance and The Emhmentioning

confidence: 99%

See 1 more Smart Citation

The Efficient Market Hypothesis, theFinancial Analysts Journal, and the Professional Status of Investment Management

Brown

2020

Financial Analysts Journal

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Section: Resultsmentioning

confidence: 99%

Section: Behavioral Finance and The Emhmentioning

confidence: 99%

The Efficient Market Hypothesis, theFinancial Analysts Journal, and the Professional Status of Investment Management

Brown

2020

Financial Analysts Journal

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“…In many concepts of intellectual capital, it is presented as the most important component from which other components may arise. The other elements have different names in given ideas, but they have a common property: one of the groups of components is external and the other is internal (Ujwary-Gil, 2009; Cremers et al, 2019).…”

Section: Ritvanen Sveiby (2018)mentioning

confidence: 99%

Untitled

2024

SPSUTOM

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The objective of the argument in this paper is to attempt at answering the question whether learning and knowledge exchange are the key factors determining online work preferences for Generation Z employees. Design/methodology/approach: The essence of knowledge management is that all knowledge, both explicit and tacit, accumulated by an organization becomes easily accessible to each of its members. This is important for decision-making processes and allows the organization to become more agile. Knowledge management is most often associated with modern information technologies. Thanks to them, streams of various data can be processed and analyzed in many different ways. However, in the literature there is an increasingly common attitude that more attention should be paid not only to the technological but also to the human aspect of knowledge management. The processes of knowledge exchange among employees have been subject to extensive research and studies, yet the recent years have added another thread to the discussion about the matter, i.e. a significant proportion of employees switching to the online work model. Based on the findings of the studies conducted on a group of employees representing Generation Z, the Principal Component Analysis (PCA) technique was applied to organize the factors with the highest relevance for the respondents in online work. Findings: PCA demonstrated that the components recognized as most important were those relating to knowledge transfer and their impact on employee efficiency, and on the other hand employee relations as a factor that supports the learning processes. Research limitations/implications: In order to dwell upon the underlying causes of this situation, it should be recommended to proceed with further in-depth qualitative research. Practical implications: What the research communicates to the organization is that although Generation Z members are aware of the significance of the knowledge transfer and learning processes and they understand the role of peer relations in these processes, they are unable to overcome the social barriers created by the online working system due to lack of appropriate skills. Originality/value: The paper reveals new aspects that play crucial role in shaping Generation Z attitude to online work from one side. On the other hand it also helps to design synthetic tool researching this area in the future.

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“…Many studies argue that performance is significantly related to numerous active management skills (see Cremers et al (2019) for a recent review). A manager with those skills should exploit them to take active positions in his portfolio.…”

Section: Active Management Variablesmentioning

confidence: 99%

Performance Evaluation Disagreement

Chrétien,

Kammoun

2024

FSR

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This paper studies investor disagreement in the performance evaluation of equity mutual funds by comparing two existing approaches and estimating its relations with fund characteristics, active management level and fund flows. We find that investors disagree more about the performance of funds that have higher expense ratio and turnover, lower manager tenure and dividend yield, and that are older, smaller and part of a larger family. Disagreement is also higher for funds that follow riskier investment style strategies and deviate more from their benchmarks. Finally, larger disagreement leads to more net fund flows. These findings suggest that heterogeneous investors do not value funds with aggressive active trading strategies similarly, and that favorable valuations by some clienteles result in positive demands for this type of management.

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Challenging the Conventional Wisdom on Active Management: A Review of the Past 20 Years of Academic Literature on Actively Managed Mutual Funds

Cited by 64 publications

References 316 publications

The Efficient Market Hypothesis, theFinancial Analysts Journal, and the Professional Status of Investment Management

The Efficient Market Hypothesis, theFinancial Analysts Journal, and the Professional Status of Investment Management

Untitled

Performance Evaluation Disagreement

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