TY  - JOUR
AU  - Kacperczyk,Marcin
AU  - Sialm,Clemens
AU  - Zheng,Lu
TI  - On the Industry Concentration of Actively Managed Equity Mutual Funds
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10770
PY  - 2004
Y2  - September 2004
UR  - http://www.nber.org/papers/w10770
L1  - http://www.nber.org/papers/w10770.pdf
N1  - Author contact info:
Marcin Kacperczyk
Stern School of Business
New York University
44 West 4th Street
KMC 9-190
New York, NY 10012
Tel: 212/998-0924
E-Mail: mkacperc@stern.nyu.edu

Clemens Sialm
University of Texas at Austin
McCombs School of Business
1 University Station; B6600
Austin, TX 78712
Tel: 512-232-6835
E-Mail: clemens.sialm@mccombs.utexas.edu

Lu Zheng
School of Business Administration
University of Michigan
701 Tappan Street
Ann Arbor, MI 48109
Tel: 734/763-5392
E-Mail: no email available
AB  - Mutual fund managers may decide to deviate from a well-diversified portfolio and concentrate their holdings in industries where they have informational advantages. In this paper, we study the relation between the industry concentration and the performance of actively managed U.S. mutual funds from 1984 to 1999. Our results indicate that, on average, more concentrated funds perform better after controlling for risk and style differences using various performance measures. This finding suggests that investment ability is more evident among managers who hold portfolios concentrated in a few industries.
ER  -