RT Journal Article
SR Electronic
T1 Shared Experience in Top Management Team and Mutual Fund Performance
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP jpm.2022.1.360
DO 10.3905/jpm.2022.1.360
A1 ZhengAi He
A1 Eric K. M. Tan
YR 2022
UL https://pm-research.com/content/early/2022/05/12/jpm.2022.1.360.abstract
AB This article examines the role of top management teams (TMTs) in the US mutual fund industry, focusing on the shared experience between fund managers. We find that there is a significant positive relation between shared experience in TMTs and fund performance. In our subsequent analysis, we find our shared experience measure to be associated with several documented characteristics (e.g., industry concentration, number of holdings, turnover, duration, and active management) that are found in the prior literature to be associated with positive fund performance. This provides some insights on the potential channels through which shared experience results in positive fund performance. Our overall findings have important implication for investors in considering the shared experience in TMTs when making an investment decision.