Picking Winners? Investment Consultants' Recommendations of Fund Managers

Jenkinson, Tim, Jones, Howard and Martinez, Jose Vicente (2016) Picking Winners? Investment Consultants' Recommendations of Fund Managers. Journal of Finance, 71 (5). pp. 2333-2370.

Abstract

Investment consultants advise institutional investors on their choice of fund manager. Focusing on U.S. actively managed equity funds, we analyze the factors that drive consultants’ recommendations, what impact these recommendations have on flows, and how well the recommended funds perform. We find that investment consultants’ recommendations of funds are driven largely by soft factors, rather than the funds’ past performance, and that their recommendations have a significant effect on fund flows. However, we find no evidence that these recommendations add value, suggesting that the search for winners, encouraged and guided by investment consultants, is fruitless.

Item Type: Article
Keywords: finance, asset management, investment consultants, fund performance
Subject(s): Finance
Date Deposited: 20 Sep 2013 15:00
Last Modified: 02 Oct 2018 13:31
Funders: n/a
URI: http://eureka.sbs.ox.ac.uk/id/eprint/4785

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