Morningstar Ratings and Mutual Fund Performance

By Christopher R. Blake, Matthew R. Morey. Journal of Financial and Quantitative Analysis, 2000

208 citations recorded by the source corpus.

How researchers see this paper

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Estimating the Dynamics of Mutual Fund Alphas and Betas (2008, unknown): “But Blake and Morey (2000) do not find any evidence MorningStar ratings help in this regard.”
Family Values and the Star Phenomenon: Strategies of Mutual Fund Families (2003, unknown): “Blake and Morey (2000) also find little evidence that 5-star Morningstar ratings predict superior future performance.”
Mutual Fund Performance: Skill or Luck? (2005, background): “…(e.g. at least once per year) and the performance horizon is not longer than about one-year (e.g. Grinblatt and Titman 1992, Hendricks, Patel and Zechauser 1993, Brown and Goetzmann 1995, Carhart 1997, Wermers 2003, Blake and Morey 2000, Bollen and Busse 2004, Mamaysky, Spiegel and Zhang 2004).”
Do Ads Influence Editors? Advertising and Bias in the Financial Media (2006, unknown): “Here one might conclude that Muscle Cars simply likes muscle cars, and GM advertises there to reach its readers.(4) With mutual funds, differences in schools of thought about fund selection are largely over the relative importance of variables we observe in our data, such as past returns and expense”
Star Power: The Effect of Monrningstar Ratings on Mutual Fund Flow (2008, unknown): “In addition, several academic studies motivate their analysis with the argument that Morningstar is the “most popular” and “best-known” ranking service among investors (e.g., Blume (1998), Sharpe (1998), and Blake and Morey (2000)).”