Journal of Asset Management

, Volume 14, Issue 2, pp 111–119

Are behavioural finance equity funds a superior investment? A note on fund performance and market efficiency


  • Christiane Goodfellow
    • Jade Hochschule
  • Dirk Schiereck
  • Steffen Wippler
Original Article

DOI: 10.1057/jam.2013.9

Cite this article as:
Goodfellow, C., Schiereck, D. & Wippler, S. J Asset Manag (2013) 14: 111. doi:10.1057/jam.2013.9


This article compares the performance of behavioural finance funds with the performance of the market and that of matched mutual funds across the major regions of the world from 1990 to 2010. Performance is measured raw and risk-adjusted. The empirical evidence suggests that behavioural finance funds neither outperform nor underperform the market or matched actively managed mutual funds. Overall, the empirical findings vary strongly with the set-up of the investigation. We conclude that either stock markets are more efficient, or fund management is worse, than behavioural finance funds advertise. This is consistent with other studies’ results.


market efficiencybehavioural financefund performanceinvestment strategyrisk measurement

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Ltd 2013