What Do Mutual Fund Managers' Private Portfolios Tell Us About Their Skills?
AbstractI collect a registry-based dataset on the personal portfolios of Swedish mutual fund
managers. The managers who invest personal money in the very same funds they professionally manage outperform the managers who do not. The main results are consistent with a Berk and Green (2004) equilibrium in which fund managers, in contrast to regular investors, are certain about their ability to generate abnormal returns, or lack thereof, and invest their personal wealth accordingly.