We empirically analyze the nature of returns to scale in active mutual fund management. We
find strong evidence of decreasing returns at the industry level. As the size of the active …

During the past few decades, the fraction of the equity market owned directly by individuals
declined significantly. The same period witnessed investment trends that include the growth …

We introduce a theoretical model of the active fund management industry (AFMI) in which
performance and size depend on the AFMI's competitiveness (concentration). Under …

We build a model of mutual fund competition in which a fraction of investors,
unsophisticated, exhibit a preference for familiarity, while sophisticated investors are free of …

This study investigates whether there is a potential relationship between mutual fund size
and mutual fund performance using South African data. Academic studies on the …

Investors are shifting their investment allocations from active to passive management. This
trend has accelerated in recent years. The investors who are shifting from active to passive …

The nature of returns to scale in the active mutual fund management industry has important
implications for tests of managerial skill. Using estimates that avoid econometric biases, I …

The first chapter studies the historical growth of active asset management despite the
industry's poor track record and its coincidence with net fund entry. Our quantitative model of …

If there are diseconomies of scale in asset management, any predictability in mutual fund
performance will be arbitraged away by rational investors seeking funds with the highest …