Download or read book Experiences of Mutual Fund Managers written by Jonas Klinkert and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines the impact of different experiences of mutual fund managers on fund risk and return characteristics. After controlling for time, fund and manager fixed effects, two major manager experience effects are identified. First, a higher manager career length, or alternatively a higher number of experienced recessions, leads to decreasing fund returns, skill and performance, joined by increased risk. Career concerns of mutual fund managers and incentive-based theories can provide an explanation hereon. Secondly, managers are sustainably affected from starting their career during a recession or bear market period. Funds managed by such recession managers exhibit significantly lower risk in form of volatility, value at risk and market as well as downside beta measures. This is in line with the previously identified impact of macroeconomic experiences on risk-taking by individuals and CEOs. Again, incentive-based theories and career concerns can provide a possible explanation.