Security concentration and fund performance

Pando Sohn, Sungsin Kim, Jungsoon Shin

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


We examine focused funds from 2002 to 2008 to see whether they offer superior performance to Korean equity funds without survivorship bias. Prior studies show that fund managers might allocate their funds to specific industries or focused securities to achieve superior performance. However, after controlling for various fund characteristics and using several alternative measures, our results show that fund performance has a positive relation to diversification. Furthermore, we identify that the underperformance of focused funds is due to liquidity problems, idiosyncratic risk, and trade performance. Our findings have important implications for the investment strategies of fund managers and fund industries.

Original languageEnglish
Pages (from-to)109-137
Number of pages29
JournalAsia-Pacific Journal of Financial Studies
Issue number1
StatePublished - Feb 2011


  • DGTW measure
  • Diversified fund
  • Focused fund
  • Fund performance
  • Portfolio concentration
  • Security concentration


Dive into the research topics of 'Security concentration and fund performance'. Together they form a unique fingerprint.

Cite this