New research from our faculty Philipp Schuster and his colleagues Gjergji Cici and Franziska Weishaupt reveals that bond fund managers with prior experience as traders have a distinct advantage in managing funds! 🔍 Their paper "Once a Trader, Always a Trader: The Role of Traders in Fund Management" finds that these "trader-managers" are able to: ✅ Better identify and capitalize on short-term trading opportunities ✅ Achieve lower transaction costs ✅ Exhibit more sophisticated risk management behavior These skills are especially valuable during times of market volatility. 📈 The paper has been featured in the latest issue of Institutional Money magazine (German). You can access the full study here: https://lnkd.in/eb3FjpJ3 #FundManagement #BondTrading #FinanceResearch #LinkedInPost
How do bond fund managers who have work experience as bond traders influence how mutual funds are managed? In our paper “Once a Trader, Always a Trader: The Role of Traders in Fund Management” together with Gjergji Cici and Franziska Weishaupt, we find that such trader-managers are able to better identify and exploit short-term trading opportunities and achieve lower transaction costs. These skills are particularly valuable in times of market stress. In addition, trader-managers exhibit sophisticated risk management behavior that does not conform to the cliché of excessive risk-taking. Experience from trading is therefore in demand and an advantage in fund management. Given the relevance of these issues, we are happy that our paper has been featured in the latest issue of Institutional Money (in German): https://lnkd.in/eMbkkSTc The paper is available here: https://lnkd.in/eb3FjpJ3
