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Preprint (Author's original)Open Access (License Unspecified), Open
Preprint
Targeting Targets
SSRN Electronic Journal
04 Jan 2019
Abstract
Investing in M&A targets before they receive offers yields high returns on the announcement day. Ours is the first paper to document targeting ability, which is the ability of fund managers to persistently generate such returns in excess of the returns their benchmarks earn from holding targets. Targeting ability translates one-for-one into mutual fund alpha. Targeting ability is not due to investment bank or management connections, not due to overweighting small stocks, and not due to long-term holdings that happen to become targets. Targeting ability arises from managers holding more targets, investing more capital in targets, and selecting higher-premium targets
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Details
- Title
- Targeting Targets
- Creators
- Naveen D Daniel - Drexel University, FinanceDaniel Dorn - Drexel University, FinanceDavid Pedersen - Rutgers, The State University of New Jersey
- Publication Details
- SSRN Electronic Journal
- Publisher
- SSRN
- Number of pages
- 68
- Resource Type
- Preprint
- Language
- English
- Academic Unit
- Finance
- Other Identifier
- 991021906509404721