Performance Evaluation, Contracts, and Flows in Efficient Markets

Autor:	Heber Farnsworth
Rok vydání:	2013
Předmět:	Finance Manager of managers fund business.industry Market efficiency Business Performance fee Money management Mutual fund Investment management
Zdroj:	SSRN Electronic Journal.
ISSN:	1556-5068
DOI:	10.2139/ssrn.2240573
Popis:	A common misconception in nance is that investors who believe in an efcient market will not invest with an active fund manager. In this paper I develop a model of active money management in which both the investor and the fund manager believe that the market is ecient and that all assets are fairly priced. Furthermore traditional performance measures would not be positive for the manager. But despite this the investor still nds it desirable to invest with the manager. The model yields equilibrium contracts, performance measures, and performance/ow relationships that conform with those we observe in the mutual fund industry.
Databáze:	OpenAIRE
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