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Article
Investor sentiment and mutual fund stock picking
Applied Economics Letters
  • Timothy K. Chue, Hong Kong Polytechnic University
  • G. Mujtaba Mian, Zayed University
ORCID Identifiers

0000-0002-1989-7087

Document Type
Article
Publication Date
7-13-2021
Abstract

The active share of mutual funds drops significantly when investor sentiment is high, indicating that fund managers reduce their active stock selection and stay closer to their benchmarks during such periods. Our evidence is consistent with fund managers being sentiment-prone – challenging the conventional view that it is only the preponderance of retail investors during high sentiment periods that allows sentiment to influence asset prices.

Publisher
Taylor & Francis
Disciplines
Keywords
  • Mutual fund,
  • Stock picking,
  • Active share,
  • Investor sentiment,
  • Stock return
Indexed in Scopus
No
Open Access
No
https://doi.org/10.1080/13504851.2021.1951440
Citation Information
Timothy K. Chue and G. Mujtaba Mian. "Investor sentiment and mutual fund stock picking" Applied Economics Letters (2021) ISSN: <p><a href="https://v2.sherpa.ac.uk/id/publication/issn/1466-4291" target="_blank">1466-4291</a></p>
Available at: http://works.bepress.com/mujtaba-mian/8/