Research Of Fund Performance Based On Managers' Social Network

With the development of China's financial market, the mutual funds, as typical institutional investors, are having more and more influence in the market. Fund managers, as the main investment in human capital in fund company, have significant impact on the fund's investment performance. This article goes beyond the traditional study of the personal characteristics for fund managers, studying fund managers from the perspective of social network, finding the relationship between social network status and investment performance. Selecting all on-the-job open-end equity fund managers on the market as the research object, we build a social network matrix of the fund managers based on work experience and alumni relations. After that, we studied the network characteristics of different fund managers. At the same time, the performance of funds managed by different fund managers during the inspection period are also systematically analyzed. On this basis, combining with the traditional econometric method and social network analysis method, more work are done to study the effects of social network status on fund performance, including the influence of characteristics of different social network node on individual fund managers investment performance and the influence of different social network connection on the correlation of fund performance. In order to overcome the independence between different relationship variables, this article used QAP(Quadratic Assignment Procedure). The quadratic assignment procedure makes up for the inadequacy of traditional measurement tools. Results of the analysis showed that the fund managers in social network with higher centrality are usually have worse performance. The main reason is that fund managers have limited attention and sometimes conformity. At the same time, the experimental results also showed that the strong network connection relationship might lead to strong correlation of investment performance. The main reason is that strong network connection might lead to frequent exchange of information between fund managers, and finally, investment decisions based on the familiar information set are relevant. Research of fund performance based on the social network of fund managers is of great importance for asset allocation and financial regulation, and in the future, there will be more research in this field.