RT Journal Article SR Electronic T1 Following the Followers: Mutual Fund Performance When Managers Follow Analyst Coverage JF The Journal of Index Investing FD Institutional Investor Journals SP 36 OP 48 DO 10.3905/jii.2018.9.1.036 VO 9 IS 1 A1 Gerald Abdesaken YR 2018 UL https://pm-research.com/content/9/1/36.abstract AB Mutual fund managers who adjust portfolio holdings based on analyst coverage and consensus recommendations achieve signi?cantly lower risk-adjusted returns, but perform better than when consensus recommendations are considered alone. In a rational expectations equilibrium setup, an unskilled investor places greater weight on a risky asset’s public signal, given an increase in the asset’s analyst coverage. A new measure of managerial skill based on analyst coverage is formulated and shown to be decreasing in mutual fund alphas.TOPICS: Mutual fund performance, performance measurement