Can Norwegian Mutual Fund Managers Pick Stocks?

2017

Master's thesis Business Administration BE501 - University of Agder 2017 This thesis examines the performance and persistence of Norwegian mutual funds using a comprehensive dataset (surviving and non-surviving funds) over the period 1983-2015. We examine the performance of Norwegian mutual funds on aggregate level and individually, using the Carhart (1997) four-factor model as our performance model. We find that Norwegian mutual funds, on aggregate, do not produce significant abnormal risk-adjusted returns. When examining mutual funds individually, we apply a cross-section bootstrap to distinguish between skill and luck. The bootstrap is necessary for proper inference because the cross-sec…