Journal of Business Ethics

, Volume 105, Issue 4, pp 503–517 | Cite as

Managerial Abilities: Evidence from Religious Mutual Fund Managers

  • Luis Ferruz
  • Fernando MuñozEmail author
  • María Vargas


In this study, we analyze the financial performance and the managerial abilities of religious mutual fund managers, implementing a comparative analysis with conventional mutual funds. We use a broad sample, free of survivorship bias, of religious equity mutual funds from the US market, for the period from January 1994 to September 2010. We build a matched-pair conventional sample in order to compare the results obtained for both kinds of mutual fund managers. We analyze stock-picking and market timing abilities, topics widely neglected for the specific case of religious mutual fund managers. We also study style timing abilities. As far as we are aware, this aspect has not been studied previously for religious mutual fund managers. Our results indicate that religious mutual fund managers underperform both the market and their conventional counterparts. This result is driven by negative stock-picking ability which could be generated by excluding “Sin” stocks from their portfolios. Moreover, they are not able to time the market or any of the following styles: size, book-to-market, and momentum.


Religious mutual funds Stock-picking Market timing Style timing Conditional performance 



The authors would like to thank the financial support provided by University of Zaragoza (Spain) through the research projects UZ2009-SOC-05 and UZ2010-SOC-02. We also would like to express our acknowledgements to Aragon Government by the funding received as Public and Official Research Group (GIECOFIN).


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Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  1. 1.Facultad de Economía y EmpresaUniversidad de ZaragozaZaragozaSpain
  2. 2.Centro Universitario de la Defensa de Zaragoza, Academia General MilitarZaragozaSpain

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