Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
958273 | Journal of Empirical Finance | 2012 | 14 Pages |
Abstract
Previous research debates whether investors are smart enough to invest in funds that subsequently outperform. This paper documents a robust smart money effect among top-performing small fund investors, even after controlling for the momentum factor. I further explore the reason for the smart money effect and find that such outperformance comes from the market-timing ability of smart investors. Market-timing ability distinguishes smart investors from investors who naively chase the winners.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Hsin-Yi Yu,