Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Investing
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Investing

The Journal of Investing

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JOI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

Style Drift Among Value and Growth Funds

Glenn Tanner, William T. Chittenden and Janet D. Payne
The Journal of Investing October 2020, joi.2020.1.142; DOI: https://doi.org/10.3905/joi.2020.1.142
Glenn Tanner
is an associate professor of finance at Texas State University in San Marcos, TX
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
William T. Chittenden
is an associate professor of finance at Texas State University in San Marcos, TX
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Janet D. Payne
is a professor of finance at Texas State University in San Marcos, TX
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Click to login and read the full article.

Don’t have access? Click here to request a demo 

Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600

Abstract

In the United States, retail investors rely heavily on the mutual fund industry to meet long-term objectives such as preparing for retirement. One segment of the mutual fund industry identifies as value stock funds, while another identifies as growth stock funds. Anecdotal evidence suggests that mutual funds in both categories deviate from their stated style for some of their purchases. We identify what proportion of each types’ funds are invested in crossover stocks that do not fit the funds’ stated investment styles and whether this deviation earns abnormal positive returns. We find that mutual fund managers frequently hold stocks outside their identified style; this effect is larger for value fund managers holding growth stocks. We find that, on average, growth fund managers earn higher returns than their index on these “crossover” stock holdings. We conduct a simple attribution analysis and provide weak evidence that managers of large-cap growth funds can time their investment in value stocks, and strong evidence that both large and small-cap growth fund managers can successfully select underpriced value stocks. The same is not true of value fund managers.

TOPICS: Exchange-traded funds and applications, mutual fund performance, manager selection

Key Findings

  • • Managers of value funds, particularly small-cap value funds, frequently and consistently deviate from their stated fund objective.

  • • Deviating from fund style does not generate excess returns for value fund managers by either timing or selection.

  • • Growth fund managers generate excess returns by investing in value stocks, particularly from selecting underpriced Value stocks, though they deviate from style less often.

  • © 2020 Pageant Media Ltd
View Full Text

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Investing: 30 (2)
The Journal of Investing
Vol. 30, Issue 2
February 2021
  • Table of Contents
  • Index by author
  • Complete Issue (PDF)
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Investing.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Style Drift Among Value and Growth Funds
(Your Name) has sent you a message from The Journal of Investing
(Your Name) thought you would like to see the The Journal of Investing web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Style Drift Among Value and Growth Funds
Glenn Tanner, William T. Chittenden, Janet D. Payne
The Journal of Investing Aug 2020, joi.2020.1.142; DOI: 10.3905/joi.2020.1.142

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Style Drift Among Value and Growth Funds
Glenn Tanner, William T. Chittenden, Janet D. Payne
The Journal of Investing Aug 2020, joi.2020.1.142; DOI: 10.3905/joi.2020.1.142
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • RELATED LITERATURE
    • RESEARCH QUESTIONS
    • DATA AND METHODOLOGY
    • RESULTS
    • CONCLUSIONS
    • ADDITIONAL READING
    • ENDNOTES
    • REFERENCES
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 1068-0896 | E-ISSN: 2168-8613

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy