We propose a simple model that relates skills of a fund manager to his reliance on public information -- the main implication being that the sensitivity of a manager's holdings to changes in public information decreases in his skill level. We estimate this sensitivity (RPI) as the R^2 of the...

We provide evidence for the effects of social norms on markets by studying quot;sinquot; stocks - publicly-traded companies involved in producing alcohol, tobacco, and gaming. We hypothesize that there is a societal norm to not fund operations that promote vice and that some investors,...