%0 Journal Article %A Gerald Abdesaken %T Following the Followers: Mutual Fund Performance When Managers Follow Analyst Coverage %D 2018 %R 10.3905/jii.2018.9.1.036 %J The Journal of Index Investing %P 36-48 %V 9 %N 1 %X Mutual fund managers who adjust portfolio holdings based on analyst coverage and consensus recommendations achieve signi?cantly lower risk-adjusted returns, but perform better than when consensus recommendations are considered alone. In a rational expectations equilibrium setup, an unskilled investor places greater weight on a risky asset’s public signal, given an increase in the asset’s analyst coverage. A new measure of managerial skill based on analyst coverage is formulated and shown to be decreasing in mutual fund alphas.TOPICS: Mutual fund performance, performance measurement %U https://jii.pm-research.com/content/iijindinv/9/1/36.full.pdf