Question

Do fund manager quality and risk appetite affect fund performance?

Answer 1

1. First - we examine whether the expirience of a fund manager has any impact on the performance of the fund.There are several reasons fund manager have superior talents include increasing ability of the fund manager to interpret the research provided by internal and external stock analysis.

Second - We measure the past stockpicking records of a fund manager.

Third - We examine mutual fund performance during the time sorroundings the replacement of a manager.

Role of managerial aversion to risk in explaining fund performance,we add two proxies for managerial risk aversion to determine whether managers who trade more aggresively on their private information exhibit a level of performance different from other managers.

Fund manager is most important predictor of the future performance of the fund.