I document how the organizational form of a mutual fund affects its investment strategies. Confirming the main predictions of Stein (2002), I show that decentralized funds tilt their portfolios to soft (opaque) information companies whereas centralized funds tilt their portfolios towards hard...

I document how the organizational form of a mutual fund aects its investment strategies. I show that centralized funds tilt their portfolios to hard information com- panies whereas decentralized funds tilt their portfolios to soft information companies. I also show that the investments of...

I document how the organizational form of a mutual fund aects its investment strategies. I show that centralized funds tilt their portfolios to hard information com- panies whereas decentralized funds tilt their portfolios to soft information companies. I also show that the investments of...

I document how the organizational form of a mutual fund affects its investment strategies. I show that centralized funds tilt their portfolios to hard information companies whereas decentralized funds tilt their portfolios to soft information companies. I also show that the investments of...

I provide evidence showing that during the incubation period, mutual funds face less stringent limits of arbitrage constraints and payoff complementarities problems. I document that incubated funds hold more illiquid and less-popular securities and are better at buying stocks in the incubation...