Momentum Trading by Institutions

Momentum Trading by Institutions

We document the equity trading practices of approximately 1,200 institutions from the third quarter of 1987 through the third quarter of 1995. We decompose trading by institutions into the initiation of new positions (entry), the termination of previous positions (exit), and adjustments to ongoing h...

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Veröffentlicht in:The Journal of finance (New York) 2002-12, Vol.57 (6), p.2449-2478
Hauptverfasser: Badrinath, S.G., Wahal, Sunil
Format: Artikel
Sprache:eng
Schlagworte:
Contrarian investing
Economic theory
Equity
Financial investments
Financial portfolios
Financial securities
Institutional investments
Institutionalism
Investment advisors
Investment policy
Investment strategies
Market adjustment
Pension funds
Portfolio management
Price momentum
Rates of return
Securities trading
Security portfolios
Stocks
Studies
Trade
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Beschreibung
Zusammenfassung:We document the equity trading practices of approximately 1,200 institutions from the third quarter of 1987 through the third quarter of 1995. We decompose trading by institutions into the initiation of new positions (entry), the termination of previous positions (exit), and adjustments to ongoing holdings. Institutions act as momentum traders when they enter stocks but as contrarian traders when they exit or make adjustments to ongoing holdings. We find significant differences in trading practices among different types of institutions.
ISSN:0022-1082
1540-6261
DOI:10.1111/1540-6261.00502