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DOI:10.2139/ssrn.2524610 - Corpus ID: 208232707
@article{Hillert2020MutualFS, title={Mutual Fund Shareholder Letters: Flows, Performance, and Managerial Behavior}, author={Alexander Hillert and Alexandra Niessen-Ruenzi and Stefan Ruenzi}, journal={Rhetorical Analysis eJournal}, year={2020}, url={https://api.semanticscholar.org/CorpusID:208232707}}- Alexander Hillert, Alexandra Niessen-Ruenzi, S. Ruenzi
- Published 17 December 2020
- Business, Economics
- Rhetorical Analysis eJournal
Fund companies regularly send shareholder letters to their investors. We use textual analysis to investigate whether the writing style of these letters matters for fund flows and whether it predicts fund performance and investment styles. We find that fund investors react to the tone and content of shareholder letters. A negative tone leads to lower net flows, while honest communication that explains fund performance in light of current economic conditions, as well as a plain English writing…
15 Citations
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15 Citations
- M. Azimi
- 2019
Economics, Business
SSRN Electronic Journal
I study the determinants of mutual fund managers’ expectations about the stock market and its implications for decision making and fund performance. Using a direct measure of managers’ market…
- 1
- Leonard KostovetskyJerold B. Warner
- 2019
Economics, Business
The Journal of Finance
We study the determinants of financial innovation in the U.S. mutual fund industry, where the number of different strategies or “styles” has grown dramatically over the last several decades. We use…
- 36
- S. AbisA. Lines
- 2020
Business, Economics
A method for categorizing funds based on the strategy descriptions in their prospectuses is introduced, and the resulting Strategy Peer Groups (SPGs), constructed using unsupervised machine learning, capture novel information about the funds and are more detailed than existing style categories.
- 8
- PDF
- Alan L. Zhang
- 2020
Computer Science, Business
SSRN Electronic Journal
This study shows that mutual fund disclosure contains rich, value-relevant textual information that can be analyzed by state-of-the-art machine learning models and help investors identify informed funds.
- 4
- PDF
- Javier Gil-BazoJuan Felipe Imbet
- 2020
Business, Economics
SSRN Electronic Journal
In contrast to mandatory information disclosures, social media offer companies the opportunity to communicate with investors with few constraints on frequency, content, and format. To investigate the…
- 1
- PDF
- S. AbisA. BuffaApoorva JavadekarA. Lines
- 2021
Economics, Business
SSRN Electronic Journal
We study qualitative information disclosures by mutual funds when investors learn from such disclosures in addition to past performance. We show theoretically that fund managers with specialized…
- 5
- PDF
- Nils Jonathan KrakowTimo Schäfer
- 2020
Economics, Business
In this paper, we use the content of U.S. mutual funds' prospectuses to examine the informational value of funds' qualitative disclosures. We document significant heterogeneity in the cross-section…
- 1
- Highly Influenced
- Qianzhou DuYawen JiaoPengfei YeWeiguo Fan
- 2018
Business, Economics
This paper shows hyperbolic languages in mutual funds’ shareholder letters contain important yet hidden information for differentiating luck and skill. Hyperbolic shareholder letters predict…
- PDF
- Qianzhou DuYawen JiaoPengfei YeWeiguo Fan
- 2019
Business
SSRN Electronic Journal
This paper studies the information content of a subtle writing style, the expression of confidence. We use unsupervised machine learning to generate new lexicons for three aspects of a writer’s level…
- 6
- Maxime BonelliA. BuyalskayaTianhao Yao
- 2021
Economics, Business
SSRN Electronic Journal
We study product differentiation in the mutual fund industry. We design a model in which funds with heterogeneous perceived quality can choose their level of product differentiation. In equilibrium,…
- 2
- PDF
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Economics, Business
This paper examines the predictive power of investment managers’ sentiment revealed in their letters to shareholders for their future performance, using closed-end funds (CEFs) as a laboratory. We…
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Economics, Business
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Economics, Business
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Economics, Business
We examine a sample of 294 mutual funds that are advertised in "Barron's" or "Money" magazine. The preadvertisem*nt performance of these funds is significantly higher than that of the benchmarks. We…
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Business, Economics
We show that name-induced stereotypes affect the investment choices of U.S. mutual fund investors. Managers with foreign-sounding names have about 10% lower annual fund flows, and this effect is…
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Economics, Business
Mutual fund managers may decide to deviate from a well-diversified portfolio and concentrate their holdings in industries where they have informational advantages. In this paper, we study the…
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Economics, Business
We show that media coverage of mutual fund holdings affects how investors allocate money across funds. Fund holdings with high past returns attract extra flows, but only if these stocks were recently…
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