Hot Hands in Mutual Funds: Short-Run Persistence of Relative Performance, 1974-1988.

A-Tier
Journal: Journal of Finance
Year: 1993
Volume: 48
Issue: 1
Pages: 93-130

Authors (3)

Hendricks, Darryll (not in RePEc) Patel, Jayendu (not in RePEc) Zeckhauser, Richard (National Bureau of Economic Re...)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The relative performance of no-load, growth-oriented mutual funds persists in the near term, with the strongest evidence for a one-year evaluation horizon. Portfolios of recent poor performers do significantly worse than standard benchmarks; those of recent top performers do better, though not significantly so. The difference in risk-adjusted performance between the top and bottom octile portfoli os is six to eight percent per year. These results are not attributable to known anomalies or survivorship bias. Investigations with a differen t (previously used) data set and with some post-1988 data confirm the finding of persistence. Copyright 1993 by American Finance Association.

Technical Details

RePEc Handle
repec:bla:jfinan:v:48:y:1993:i:1:p:93-130
Journal Field
Finance
Author Count
3
Added to Database
2026-01-29