A performance comparison between concentrated mutual funds and conventional mutual funds in Scandinavian countries

Abstract

Our thesis focuses on the Scandinavian fund market, where we compare concentrated funds with conventional funds during the time period 2009-2014. Funds have been divided into two separate categories: small/mid-cap funds and large-cap funds. The data consist of 17 conventional funds and 14 concentrated funds. We compared the two categories of funds by using active management theories and different performance measurables, in order to find out if active management skills matter for fund performance. Our results show that total return is higher for concentrated than for conventional funds. Small-mid/cap funds show the best performance for both categories of funds.