Performance and persistence of performance of healthcare mutual funds

Authors

  • Abhay Kaushik Department of Accounting, Finance, and Business Law, College of Business and Economics, Radford University
  • Lynn K. Saubert Department of Accounting, Finance, and Business Law, College of Business and Economics, Radford University
  • R. Wayne Saubert Department of Accounting, Finance, and Business Law, College of Business and Economics, Radford University

DOI:

https://doi.org/10.61190/fsr.v23i1.3187

Keywords:

Healthcare mutual funds, Persistence of performance, Performance

Abstract

This study analyzes 115 actively managed domestic healthcare mutual funds over the period 1/2000 –12/2011. Findings of this study show that, on average, healthcare mutual funds outperform the passive index by roughly 2.97% per year after controlling for the market risk premium, growth and size premiums, and momentum effects. Further, this study documents that the abnormal over- and under-performance does not persist over subsequent periods. In other words, under- and over- performances are mean reverting.

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Published

2014-03-01

How to Cite

Kaushik, A., Saubert, L. K., & Saubert, R. W. (2014). Performance and persistence of performance of healthcare mutual funds. Financial Services Review: The Journal of Individual Financial Management, 23(1), 77–91. https://doi.org/10.61190/fsr.v23i1.3187

Issue

Vol. 23 No. 1 (2014): Spring 2014

Section

New Original Submission

License

Copyright (c) 2014 Academy of Financial Services

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