Communities and regularities in the behavior of investment fund managers
Abstract
This paper relies on a unique database of fund managers' holdings to map their behavior across asset classes. We unravel the existence of stable and persistent communities. This paper characterizes three different main behavioral attitudes: conservative, reactive, and proactive. Macroeconomic shocks temporarily perturb the configuration of the system, altering the differences between communities. This paper represents a significant step forward in understanding how heuristics, attitudes, and routines shape the behavior of expert investors. It opens a research trajectory in the analysis of behavioral interdependencies in financial markets.
- Publication:
-
Proceedings of the National Academy of Science
- Pub Date:
- April 2019
- DOI:
- 10.1073/pnas.1802976116
- Bibcode:
- 2019PNAS..116.6569F