We propose a model featuring horizon-specific mutual fund manager skill. Managers optimally choose their holdings based on their skill and the price impact of their trades. Fund turnover negatively correlates with the horizon over which value is added and positively correlates with price impact...

We study a dynamic equilibrium model of mutual fund investing under career concerns that features investment opportunities at different horizons. Equilibrium returns are endogenously determined by competition. Short-term investment strategies can benefit fund managers by accelerating skill...