Investing in a global world

Jeffrey A. Busse, Amit Goyal, Sunil Wahal

Research output: Contribution to journalArticle

12 Scopus citations


We examine active retail mutual funds and institutional products with a mandate to invest in global equity markets. We find little reliable evidence of alphas in the aggregate or on average. The right tail of the distribution contains some large alphas. Decomposing stock selection from country selection, we find some evidence of superior stock picking abilities in the extreme right tail. However, simulations suggest that they are produced just as likely by luck as by skill. Persistence tests show little evidence of continuation in superior performance.

Original languageEnglish (US)
Pages (from-to)561-590
Number of pages30
JournalReview of Finance
Issue number2
Publication statusPublished - 2014


ASJC Scopus subject areas

  • Finance

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