The Persistence of Mutual Fund Performance
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- Author(s): MARK GRINBLATT, SHERIDAN TITMAN
- Published: Apr 30, 2012
- Pages: 1977-1984
- DOI: 10.1111/j.1540-6261.1992.tb04692.x
This paper analyzes how mutual fund performance relates to past performance. These tests are based on a multiple portfolio benchmark that was formed on the basis of securities characteristics. We find evidence that differences in performance between funds persist over time and that this persistence is consistent with the ability of fund managers to earn abnormal returns.