Work

Further Evidence on the Performance of Funds of Funds: The Case of Real Estate Mutual Funds

Year: 2008

Type: article

Abstract: Funds of funds (FOFs) are created when investment companies invest in other investment companies. Although the additional layer of fees incurred by FOFs has a negative effect on returns, there is empirical evidence that real estate FOFs generate superior performance net of fees and risk adjustments. The evidence is inconsistent with a growing consensus that most actively managed mutual funds do not, on average, generate excess returns after adjusting for fees and risk. This study explains this apparent contradiction and finds that most real estate FOFs do not outperform their benchmarks under alternative risk adjustment specifications.

Source: Real Estate Economics

DOI: 10.1111/j.1540-6229.2008.00206.x

Authors: Kevin C.H. Chiang, Kirill Kozhevnikov, Ming‐Long Lee, Craig H. Wisen

Institutions: University of Vermont, University of Oregon, National Yunlin University of Science and Technology, University of Alaska Fairbanks

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: bronze

Funder: University of Wyoming

OpenAlex ID: W2153109341

FWCI: 6.408

Cites: 19

Cited by: 39

Related to: 10