The People in Your Neighborhood: Social Interactions and Mutual Fund Portfolios

被引:228
作者
Pool, Veronika K. [1 ]
Stoffman, Noah [1 ]
Yonker, Scott E. [2 ]
机构
[1] Indiana Univ, Kelley Sch Business, Bloomington, IN 47405 USA
[2] Cornell Univ, Charles Ho Dyson Sch Appl Econ & Management, Ithaca, NY 14853 USA
关键词
GENETIC-VARIATION; INFORMATION; IDENTIFICATION; PREFERENCES; INVESTMENT; DIFFUSION; PURCHASES; RISK; HERD; HOME;
D O I
10.1111/jofi.12208
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We find that socially connected fund managers have more similar holdings and trades. The overlap of funds whose managers reside in the same neighborhood is considerably higher than that of funds whose managers live in the same city but in different neighborhoods. These effects are larger when managers share a similar ethnic background, and are not explained by preferences. Valuable information is transmitted through these peer networks: a long-short strategy composed of stocks purchased minus sold by neighboring managers delivers positive risk-adjusted returns. Unlike prior empirical work, our tests disentangle the effects of social interactions from community effects.
引用
收藏
页码:2679 / 2732
页数:54
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