Research: WOM Impacts Mutual Fund Managers' Investing
Mutual fund managers located in the same city tend to buy the same stocks, indicating that word of mouth in a location plays a role in their investment decisions, according to a study by a team of professors from Princeton, Harvard, and Syracuse University.
The study theorizes that fund managers in a given city talk to each other at investment conferences and other events, exchanging information that influences their investment activities.
More info:
http://www-cpr.maxwell.syr.edu/faculty/kubik/ThyNeighbor.pdf
