Trading regularity and fund performance

• Main Authors: BUSSE, Jeffrey, TONG, Lin, TONG, Qing, ZHANG, Zhe
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Trade Frequency; Fund Performance; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5339; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6338/viewcontent/TradingFrequency_FundPerformance_2016_pp.pdf
• Institution: Singapore Management University

We construct a new measure of trading regularity, capturing the extent to which investors trade on a regular basis. Institutional investors that regularly trade outperform those that trade less regularly. The performance of funds that regularly trade persists for at least a year. Among those who tra...