FYI: In a recent article, I discussed the findings from a study by Brad Barber, Xing Huang and Terrance Odean, “Which Factors Matter to Investors? Evidence from Mutual Fund Flows,” which appeared in the October 2016 issue of The Review of Financial Studies.
In their paper, the authors investigated whether investors tend to consider common equity factors when assessing mutual fund managers. In other words, do investors attempting to identify a skilled active manager strip out the returns that can be traced to a mutual fund’s exposure to the investment factors known to explain cross-sectional equity returns?
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-which-factors-really-matter-investors?nopaging=1
