Skip navigation
Please use this identifier to cite or link to this item: http://hdl.handle.net/2451/27431
Title: Delegated Monitoring of Fund Managers
Authors: Gervais, Simon
Lynch, Anthony W.
Musto, David K.
Issue Date: 25-Jul-2002
Series/Report no.: SC-AM-02-01
Abstract: Because a money manager learns more about her skill from her management experience than outsiders can learn from her realized returns, she expects inefficiency in future contracts that condition exclusively on realized returns. A fund family that learns what the manager learns can reduce this inefficiency cost if the family is large enough. The family’s incentive is to retain any given manager regardless of her skill but, when the family has enough managers, it adds value by boosting the credibility of its retentions through the firing of others. In this way, large fund families add value through crosSC-sectional reputation. As the number of managers grows the efficiency loss goes to zero.
URI: http://hdl.handle.net/2451/27431
Appears in Collections:Asset Management

Files in This Item:
File Description SizeFormat 
S-AM-02-01.pdf577.3 kBAdobe PDFView/Open


Items in FDA are protected by copyright, with all rights reserved, unless otherwise indicated.