Divining a Mutual Fund's True Style

June 2002
Journal of Financial Planning;Jun2002, Vol. 15 Issue 6, p19
Academic Journal
The article looks at some mutual fund analysis techniques. Returns-based style analysis is the best available option for funds with no portfolio data, such as hedge funds, or that heavily use options or other derivatives. Style analysis is far less useful for small-capitalization funds. Neither holdings-based analysis nor style analysis is very reliable for funds that change styles frequently. While holdings-based analysis requires only one year's worth of data, versus generally three years for returns-based analysis.


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