Bris, Arturo; Gulen, Huseyin; Kadiyala, Padmaja; Rau, … - School of Management, Yale University - 2003
We analyze why managers of open-ended mutual funds choose to close their funds to new investment. Borrowing from Berk and Green (2004), we develop a model of the mutual fund closure decision where the main ingredient is a negative relationship between fund size and the fund’s realized return....