Document Type
Article
Date
5-2003
Keywords
tbd
Disciplines
Economics
Description/Abstract
A mutual-fund manager is more likely to hold (or buy, or sell) a particular stock in any quarter if other managers in the same city are holding (or buying, or selling) that same stock. This pattern shows up even when controlling for the distance between the fund manager and the stock in question, so it is distinct from a local-preference effect. It is also robust to a variety of controls for investment styles. These results can be interpreted in terms of an epidemic model in which investors spread information about stocks to one another by word of mouth.
Recommended Citation
Kubik, Jeffrey D.; Hong, Harrison; and Stein, Jeremy, "Thy Neighbor's Portfolio: Word-of-Mouth Effects in the Holdings and Trades of Money Managers" (2003). Economics - All Scholarship. 100.
https://surface.syr.edu/ecn/100
Source
Harvested from ssrn.com
Additional Information
This manuscript is from the Social Science Research Network, for more information see http://papers.ssrn.com/sol3/papers.cfm?abstract_id=331140#193443