The Performance of Local versus Foreign Mutual Fund Managers

R.R.A.E. Otten; W.F.M. Bams

doi:10.1111/j.1468-036X.2007.00379.x

The Performance of Local versus Foreign Mutual Fund Managers

R.R.A.E. Otten^*, W.F.M. Bams

^*Corresponding author for this work

Finance

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

In this paper we examine the performance of us equity funds (locals) versus uk equity funds (foreigners) also investing in the us equity market. Based on informational disadvantages one would expect the uk funds to under-perform the us funds, especially in the research-intensive small company market. After controlling for tax treatment, fund objectives, investment style and time-variation in betas, we do not find evidence for this. In the small company segment we even find a slight out-performance for uk funds compared to us funds. Finally we observe a home bias in the uk portfolios, which is partly attributable to uk funds investing in cross-listed stocks in the usa.

Original language	English
Pages (from-to)	702-720
Number of pages	19
Journal	European Financial Management
Volume	13
Issue number	4
DOIs	https://doi.org/10.1111/j.1468-036X.2007.00379.x
Publication status	Published - 1 Sept 2007

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The Performance of Local versus Foreign Mutual Fund Managers

Abstract

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