CopyQ | Industry concentration | Mean | Industry |
|---|
Following | Neither | Leading | Following | Neither | Leading | Delta Ind |
|---|
5 | 5.89 | 4.76 | 4.45 | 6.56 | 6.67 | 6.50 | − 0.063*** |
4 | 4.65 | 4.38 | 4.31 | 6.45 | 6.55 | 6.44 | − 0.032*** |
3 | 4.43 | 4.16 | 4.28 | 6.40 | 6.53 | 6.39 | − 0.030*** |
2 | 4.47 | 3.72 | 4.42 | 6.37 | 6.51 | 6.36 | − 0.014** |
1 | 4.47 | 3.41 | 4.48 | 6.31 | 6.51 | 6.31 | − 0.005 |
0 | 4.26 | 6.99 | 4.26 | 6.21 | 6.47 | 6.21 | − 0.000 |
− 1 | 4.48 | 3.37 | 4.51 | 6.31 | 6.51 | 6.31 | 0.003 |
− 2 | 4.32 | 3.65 | 4.39 | 6.34 | 6.52 | 6.35 | 0.022*** |
− 3 | 4.31 | 4.00 | 4.51 | 6.41 | 6.57 | 6.42 | 0.029*** |
− 4 | 4.46 | 4.13 | 4.84 | 6.45 | 6.60 | 6.48 | 0.040*** |
− 5 | 4.49 | 4.71 | 5.91 | 6.52 | 6.68 | 6.57 | 0.049*** |
- Stocks in the portfolios of all funds in the sample are classified into 10 industry groups, as tabulated in Kacperczyk et al. (2005), and then further grouped into those in which the fund manager is following others trades (‘Following’), leading others trades (‘Leading’), or doing neither (‘Neither’). Within each of these three groups, portfolio weights are aggregated by industry. Industry Concentration is calculated as the standard deviation of aggregate portfolio weights, and are displayed in table columns 2, 3 and 4. Mean Industry is calculated as the average industry code (from 1 to 10) for all stocks in each group (Following, Leading and Neither), and tabulated in columns 5, 6 and 7. ‘Delta Ind’ depicts the difference between the mean industry of stocks in which a fund Leads versus those in which it Follows. Standard t-tests are used to establish whether these differences are significant. Statistical significance is denoted by ∗∗∗, ∗∗ and ∗ for significance at the 1%, 5% and 10% levels, respectively
