PT - JOURNAL ARTICLE AU - H. Kent Baker AU - John A Haslem AU - David M Smith TI - Performance and Characteristics of Actively Managed Institutional Equity Mutual Funds AID - 10.3905/JOI.2009.18.1.027 DP - 2009 Feb 28 TA - The Journal of Investing PG - 27--44 VI - 18 IP - 1 4099 - https://pm-research.com/content/18/1/27.short 4100 - https://pm-research.com/content/18/1/27.full AB - We investigate the relation between the performance and characteristics of 1,118 domestic, actively managed institutional equity mutual funds. We find evidence in a univariate analysis that expense ratio class is an important determinant of performance, and the results are significant in a multivariate setting using only Miller’s active alpha as a performance metric. The regression results show that larger institutional equity funds and those with greater cash holdings tend to perform better. We obtain mixed results involving the role of turnover, beta, and dividend yield as related to performance. Our evidence also shows that expense ratios and fund asset size are characteristics distinguishing the performance between institutional funds and retail funds. Finally, for both institutional funds and retail funds, a positive relation exists between a higher percentage of cash held and better fund performance.TOPICS:Performance measurement, mutual fund performance, equity portfolio management