City Research Online

Recession managers and mutual fund performance

Chen, J., Lasfer, M. ORCID: 0000-0003-2338-672X, Song, W. and Zhou, S. (2021). Recession managers and mutual fund performance. Journal of Corporate Finance, 69, 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
Date available in CRO: 09 Jun 2021 10:09
Date deposited: 9 June 2021
Date of acceptance: 8 June 2021
Date of first online publication: 16 June 2021
[img] Text - Accepted Version
This document is not freely accessible until 16 December 2022 due to copyright restrictions.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

To request a copy, please use the button below.

Request a copy



Downloads per month over past year

View more statistics

Actions (login required)

Admin Login Admin Login