Empirical Research on Mutual Funds
Target audience
PhD students with background in economics, finance or related fields from Flemish universities
Organizing and scientific committee
Prof. Michael Frömmel (UGent)
Dr. Christof Stahel, Investment Company Institute, Washington DC, and UGent
Dr. Qisi Zhang (UGent)
Format
This informal two-semester equivalent course generally meets biweekly for four hours.
The course largely mirrors a one-semester course at the PhD level developed by Professor Vikas Agarwal at Georgia State University’s J. Mack Robinson College of Business, to whom I am
deeply indebted.
Objectives
This informal course introduces empirical research on investments, with a particular focus on mutual funds. The different topics include (i) performance evaluation of managed portfolios
(returns based and holdings based); (ii) sources of managerial skill; (iii) determinants of fund flows and smart money effect; (iv) managerial incentives and risk-taking behavior; (v) liquidity
management and systemic risk; (vi) exchange-traded funds; (vii) portfolio disclosure; (viii) operational risk, financial misconduct, and frauds; (ix) sustainable finance; (x) Fintech; and (xi)
behavioral biases, retail investors, and household finance.
The primary objective of the course is to provide a strong foundation in mutual fund research and to prepare participants to succeed as researchers. It will equip participants to apply core research
concepts from finance and provide initial, thorough exposure to some foundational papers in the field, helping participants develop original research suitable for publication in leading finance
journals.
The course focuses on mutual funds, but because hedge funds are closely related delegated
portfolio management vehicles, the supplement material for each meeting also contains articles
related to hedge funds.
The course format will not consist of lectures. Instead, it will involve participant presentations and
discussion among course participants. For most papers, the instructor will lead and facilitate the discussion by asking questions on each topic during each meeting. Participants are expected to
come to each meeting well prepared, having read at minimum the assigned mandatory material for that meeting, as this preparation is essential for productive discussion during the presentations.
A tentative course outline with assigned mandatory and supplemental reading material is provided at the end of this document. Participants are required to read the papers listed under “required
reading” while other papers listed under “Supplemental reading” should help students achieve deeper understanding of the topic. The instructor will be presenting some papers at each meeting.
Course Content
The course is based entirely on published and unpublished research papers. The list of reading includes seminal papers as well as recent papers for each topic. The papers are arranged
chronologically for participants to get an understanding of how research has evolved in each area.
Here are some survey articles and an MBA-level textbook that could be useful:
1. The economics and finance of hedge funds: A review of the academic literature by Vikas Agarwal, Kevin Mullally, and Narayan Y. Naik, Foundations and Trends in Finance, 2015, 10(1).
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2650919
2. Hedge funds: A dynamic industry in transition, Mila Getmansky, Peter A. Lee, and Andrew W. Lo, Annual Review of Financial Economics, 2015, Volume 7, 483-577
http://alo.mit.edu/wp-content/uploads/2015/08/HFReview_11b.pdf
3. Portfolio performance evaluation by George O. Aragon and Wayne E. Ferson, Foundations and Trends in Finance, 2006, 2(2), 83‒190.
https://www.dropbox.com/s/ax3m43ldou2lcxq/Portfolio%20performance%20evaluation.pdf?dl=0
4. The economics of mutual funds by David K. Musto, Annual Review of Financial Economics, 2011, 3, 159‒172.
https://www.dropbox.com/s/lobr1cjug0shypq/Economics%20of%20mutual%20funds%20- %20David%20Musto.pdf?dl=0
5. Performance measurement of mutual funds, hedge funds, and institutional accounts by Russ Wermers, Annual Review of Financial Economics, 2011, 3, 537‒574.
https://www.dropbox.com/s/r4qefflpdo1kzt7/Performance%20measurement%20-%20Russ%20Wermers.pdf?dl=0
6. Ben-David, Itzhak, Francesco A. Franzoni, and Rabih Moussawi, 2017, Exchange traded funds (ETFs), Annual Review of Financial Economics, 2017, 9(6), 169‒189.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2865734
7. Bodie, Kane, and Markus, Investments, McGraw-Hill.
Course Policy
Required reading
While the course is informal, participation is an extremely important requirement. As a rule of thumb, every participant should aim to provide at least one insightful comment during the
discussion of each paper. Therefore, participants are expected to study the articles before class and be well-prepared to discuss the main idea, methodology, and key findings of each paper.
Participants should read the papers critically as if they are reviewing the paper for an academic journal. We will discuss expectations in the first meeting.
Report and Presentation
Each participant needs to make at least two presentations (15-20 slides) lasting not more than 60 minutes and write a short report (3-5 pages) on any of the papers included in the course. The
presentation topics and dates will be decided during the introductory session. The presentation and report must cover (a) the paper’s succinct “hook,” motivation, and background, (b) a brief, but
carefully organized, summary of the existing literature that places the paper, (c) main contributions of the paper, (d) description of methodology and data, (e) summary of the main results, (f) critical
discussion of the paper, and (g) suggestions for possible future research in the area. Presentation slides and report are due Sunday the week prior to the presentation.
While preparing for the presentation and report, participants may find it useful to read additional working papers (over and above the assigned reading for the day). A good resource for working
papers is Social Sciences Research Network (SSRN) (www.ssrn.com). To find the related literature, you can use Google Scholar (http://scholar.google.com/) and Web of Science (http://apps.webofknowledge.com/WOS_GeneralSearch_input.do?product=WOS&search_mode=GeneralSearch&SID=1C44qlKvTX9tHhhFfnT&preferencesSaved=)
Course Paper
Finally, each participant is required to write a course paper in which a novel research question is asked and empirically examined.
The paper will be judged on the quality of the research question, the rigor of the empirical analysis and interpretation of results, and the quality of the writing. AI-supported writing is acceptable, but
only to improve grammar and flow.
Participants should begin thinking about their course-paper topic as soon as the course begins and are expected to discuss potential ideas with the instructor throughout the course. A paper proposal
is due at the end of the first semester. The proposal should state the research question, describe the related literature and the paper’s intended contributions, present specific hypotheses, and outline
the empirical approach used to test them. The proposal should be written in the style of a research paper, with the discussion of empirical test results left to be completed.
During the last meeting of the first semester, participants will present their proposals and receive feedback from the instructor and other participants. Participants will then revise their proposals
based on this feedback, carry out the empirical analysis, and add the results and interpretation, producing a first full draft of the paper. This draft must be submitted no later than mid-semester in
the second semester. Afterward, participants will present the complete paper, including empirical results, in one of the course meetings and receive additional feedback from the instructor and other
participants. Participants will then incorporate this feedback and submit a final version at the end of the second semester.
All versions of the paper (the proposal, first draft, and final paper) should be submitted to the instructor via email.
Participants are encouraged to read the writing tips by Professor John Cochrane at https://www.johnhcochrane.com/research-all/writing-tips-for-phd-studentsnbsp
This should be helpful in writing the course paper and for your future work.
Programme
Starts 19 October 2026.
From 29/10 biweekly Thursday 15:00-18:00 online presentations until Christmas and again from 15/2 in the second semester biweekly onwards.
The following course outline and list of required and supplemental reading is tentative and subject
to change.
Registration
- Follow this link for the registration and waiting list. We check if you are eligible to participate. Due to limited places, we give priority to PhD students. Your registration will be confirmed by separate e-mail (outlook invite).
- Cancellation of your registration can only be performed by sending an email to doctoralschools@ugent.be.
-
The no show policy applies.
Registration fee
Free of charge for Doctoral School members.
Number of participants
Maximum 15
Language
English
Training method
Participant presentations and discussion (ex-cathedra lectures only in the introductory session). Participants are expected to read and critically discuss assigned mandatory materials. Ex-cathedra: 6, presentations 15, discussion 3
Evaluation method
Active participation (essential), one presentation (15-20 slides): 25% , a short report (3-5 pages): 30%, and a final course paper (empirical analysis): 45%
After successful participation, the Doctoral School Office will add this course to your curriculum of the Doctoral Training Programme in Oasis. Please note that this can take up to one to two months after completion of the course.