Mutual fund performance and management location

In this article we develop and explore the most comprehensive database of fund manager performance delineated by location. We use this database and four performance evaluation techniques to determine whether a fund manager’s location relative to the location of the securities they manage are listed and traded has any impact on fund performance. The main results of our article are very positive for the US fund management industry. Any investor wishing to invest in a US equity mutual fund would be well advised to have this portfolio managed by a manager based in the United States. Compared with European managers of US equity mutual funds, US managers produce higher mean alpha and display a far greater tendency for positive performance persistence.