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Recession managers and mutual fund performance

Chen, J., Lasfer, M. ORCID: 0000-0003-2338-672X, Song, W. & Zhou, S. (2021). Recession managers and mutual fund performance. Journal of Corporate Finance, 69, article number 102010. doi: 10.1016/j.jcorpfin.2021.102010


We find that fund managers who began their careers during recessions produce superior returns. This superior performance is not unconditional, as they exhibit better market timing than their non-recession counterparts in recessions, but do not demonstrate better stock picking in booms. Exploring managers’ portfolio choices across years, we find that recession managers tilt their investments towards defensive, rather than cyclical, industries during and before recession periods. Overall, our findings support the argument that the economic conditions under which an individual initially entered the labour market exert a long-term impact on her career outcomes and decision-making.

Publication Type: Article
Additional Information: This article has been published in Journal of Corporate Finance, Elsevier (
Publisher Keywords: Mutual fund managers; Recession; Economic conditions; Performance; Market timing
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HG Finance
Departments: Bayes Business School > Finance
SWORD Depositor:
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