Performance persistence and management skill in nonconventional bond mutual funds

Authors

  • James Philpot Frank D. Hickingbotham School of Business, Ouachita Baptist University, Arkadelphia, AR 71998, USA
  • Douglas Hearth Department of Finance, Sam M. Walton College of Business Administration, University of Arkansas, Fayetteville, AR 72701, USA
  • James Rimbey Department of Finance, Sam M. Walton College of Business Administration, University of Arkansas, Fayetteville, AR 72701, USA

DOI:

https://doi.org/10.1016/S1057-0810(00)00066-4

Keywords:

Non-conventional bond funds, Mutual fund performance

Abstract

Recent empirical research has identified a tendency for equity mutual funds to provide consistent performance relative to other funds over time. Studies of bond funds have centered around investment grade, straight bonds and have concluded that fund managers outperform indexes on a gross (although not net) basis, but that performance is hampered by high expense levels. We examine nonconventional bond funds (high-yield bonds, global issues and convertible bonds) and find that short-term perfor- mance persistence is present, but limited to the high-yield bond subsample. Fund managers are unable to distinguish themselves in the long term, despite the diverse nature of the funds they oversee. © 2001 Elsevier Science Inc. All rights reserved.

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Published

2000-09-30

How to Cite

Philpot, J., Hearth, D., & Rimbey, J. (2000). Performance persistence and management skill in nonconventional bond mutual funds. Financial Services Review, 9(3), 247–258. https://doi.org/10.1016/S1057-0810(00)00066-4

Issue

Vol. 9 No. 3 (2000): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2000 Elsevier Science Inc.

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