Do Funds Make More When They Trade More? (Digest Summary): L. Pastor, R. F. Stambaugh, and L. A. Taylor, Journal of Finance, Vol. 72, No. 4 (August 2017): 1483-1528

Research output: Contribution to specialist publicationBook/Film/Article review

Abstract

Active equity mutual funds display a positive relationship between turnover and future returns in excess of their Morningstar-designated benchmarks. Turnover is highly correlated across active funds, and turnover increases during times of market mispricing as measured by investor sentiment, volatility of stock returns, and marketwide liquidity.
Original languageEnglish
Volume48
No.4
Specialist publicationCFA Digest
PublisherCFA Institute
DOIs
Publication statusPublished - Apr 2018

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