RAMOS Sofia

Investment manager skill is one of the most studied topics in finance, so readers may wonder why there are still theses like this one launching three new Essays on the topic. Taken together, these essays contribute to various streams of the investment management literature by taking a fresh look at skill in asset classes where it is difficult to measure (private equity), or where the topic has not been studied in depth.) The results yield contrasting results, as there is substantial evidence of skill for private equity, even after fees, but less evidence of skill for mutual fund families. Possible reasons for this discrepancy may include high fund manager incentives in private equity, diminishing returns to scale in the mutual fund industry, search costs for investors, market inefficiency, or a combination of these factors. These Essays also contain useful information for practitioners and investors. By identifying at least a few skill determinants, practitioners can gain insight into the behaviors that add (or subtract) to the value of their funds. By quantifying and locating competencies across different types of funds, study results can also help investors focus their search for competencies, and at least increase the likelihood of finding a qualified fund manager. To conclude this introduction, the topic of fund management skill is extremely important to many people, but it is a complex topic that still needs a lot of serious research. The best I can hope for is that these Essays shed new light on some aspects of the subject that have not yet been fully explored in the existing literature. On a personal note, I found the research to be a very interesting and challenging task that provided a rich framework to advance my skills as an empirical financial researcher. I hope you enjoy reading these Essays as much as I enjoyed putting them together.