TY - JOUR T1 - Performance and Characteristics of Actively Managed Institutional Equity Mutual Funds JF - The Journal of Investing SP - 27 LP - 44 DO - 10.3905/JOI.2009.18.1.027 VL - 18 IS - 1 AU - H. Kent Baker AU - John A Haslem AU - David M Smith Y1 - 2009/02/28 UR - https://pm-research.com/content/18/1/27.abstract N2 - 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 ER -