Mutual Fund Market Timing Worldwide
October 1, 2014 - Investing Expertise, Mutual/Hedge Funds
How successful are active equity mutual fund managers in timing their domestic markets worldwide? In their August 2014 paper entitled “Market Timing Around the World”, Javier Vidal-Garcia, Marta Vidal and Duc Khuong Nguyen employ daily returns to measure the effectiveness of mutual fund market exposure adjustments made more frequently than monthly. They also examine fund timing performance under different economic conditions. Their fund universe consists of 8,680 actively managed, open-end, diversified, domestic live and dead equity mutual funds registered in 35 countries (about 69% are U.S.-registered). Using daily total returns in local currencies and characteristics for these funds, along with contemporaneous country economic data, during January 1990 through December 2013, they find that: Keep Reading