Generating Alpha: A Study of U.S. Actively Managed Mutual Fund Performance in the 2007-2009 Recession

This piece of research aims to test if U.S. actively managed equity mutual funds provide value during downturns in the market, specifically during the recession caused by the Global Financial Crisis. As passive funds will only track the market during downturns (i.e. lose value), actively managed mut...

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Main Author: Anthony, Eric
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Online Access:https://eprints.nottingham.ac.uk/53453/
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author Anthony, Eric
author_facet Anthony, Eric
author_sort Anthony, Eric
building Nottingham Research Data Repository
collection Online Access
description This piece of research aims to test if U.S. actively managed equity mutual funds provide value during downturns in the market, specifically during the recession caused by the Global Financial Crisis. As passive funds will only track the market during downturns (i.e. lose value), actively managed mutual funds seem like an area of value for investors. To test this theory, I begin with a review of the relevant literature focused on fund manager performance in various economic cycles. I then empirically test my sample data using the CAPM, Three-Factor, and Four-Factor returns-based performance evaluation models put forth by Sharpe (1964) and Lintner (1965), Fama and French (1993), and Carhart (1997), respectively. By analyzing the 18-month recession of the Global Financial Crisis compared to the 18-month period leading up to the recession and the 18-month period directly following it, as well as the 54-month period as a whole, I aim understand mutual fund performance in times of market downturn.
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spelling nottingham-534532022-01-24T17:04:06Z https://eprints.nottingham.ac.uk/53453/ Generating Alpha: A Study of U.S. Actively Managed Mutual Fund Performance in the 2007-2009 Recession Anthony, Eric This piece of research aims to test if U.S. actively managed equity mutual funds provide value during downturns in the market, specifically during the recession caused by the Global Financial Crisis. As passive funds will only track the market during downturns (i.e. lose value), actively managed mutual funds seem like an area of value for investors. To test this theory, I begin with a review of the relevant literature focused on fund manager performance in various economic cycles. I then empirically test my sample data using the CAPM, Three-Factor, and Four-Factor returns-based performance evaluation models put forth by Sharpe (1964) and Lintner (1965), Fama and French (1993), and Carhart (1997), respectively. By analyzing the 18-month recession of the Global Financial Crisis compared to the 18-month period leading up to the recession and the 18-month period directly following it, as well as the 54-month period as a whole, I aim understand mutual fund performance in times of market downturn. 2018-08-24 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/53453/1/Eric%20Anthony%2C%20MSc%20Finance%20and%20Investment%20Dissertation.pdf Anthony, Eric (2018) Generating Alpha: A Study of U.S. Actively Managed Mutual Fund Performance in the 2007-2009 Recession. [Dissertation (University of Nottingham only)]
spellingShingle Anthony, Eric
Generating Alpha: A Study of U.S. Actively Managed Mutual Fund Performance in the 2007-2009 Recession
title Generating Alpha: A Study of U.S. Actively Managed Mutual Fund Performance in the 2007-2009 Recession
title_full Generating Alpha: A Study of U.S. Actively Managed Mutual Fund Performance in the 2007-2009 Recession
title_fullStr Generating Alpha: A Study of U.S. Actively Managed Mutual Fund Performance in the 2007-2009 Recession
title_full_unstemmed Generating Alpha: A Study of U.S. Actively Managed Mutual Fund Performance in the 2007-2009 Recession
title_short Generating Alpha: A Study of U.S. Actively Managed Mutual Fund Performance in the 2007-2009 Recession
title_sort generating alpha: a study of u.s. actively managed mutual fund performance in the 2007-2009 recession
url https://eprints.nottingham.ac.uk/53453/