Lu Zheng
Personal Information
- Professor of Finance, University of California, Irvine
- Phone: 949-824-8365
- Offiice: SB 409
- Email: luzheng@uci.edu
Curriculum Vitae
Research Interests
- Empirical investments
- Mutual funds, hedge funds and institutional investors
- Behavioral finance
Education
- Ph.D. in Finance, Yale University
- B.A., Agnes Scott College
Research
Publications
“Friend or Foe: On a Common Shareholder Relationship between Mutual Funds and Public Companies,” with Shu Lin and Shu Tian, forthcoming, Journal of Financial Markets.
“Home Bias and Local Contagion: Evidence from Funds of Hedge Funds,” Clemens Sialm, Zheng Sun, and Lu Zheng, Review of Financial Studies, 33 (10), (2020): 4771–4810.
“Active Fundamental Performance,” Hao Jiang and Lu Zheng, Review of Financial Studies, 31 (12), (2018): 4688–4719.
“Only Winners in Tough Times Repeat: Hedge Fund Performance Persistence over Different Market Conditions,” Zheng Sun, Ashley Wang, and Lu Zheng, Journal of Financial and Quantitative Analysis, 53 (5), (2018): 2199-2225.
“Does Media Coverage of Stocks Affect Mutual Funds’ Trading and Performance?” Lily H. Fang, Joel Peress, and Lu Zheng, Review of Financial Studies, 27 (12), December, (2014):3441-3466. (Journal link)
“The Road Less Traveled: Strategy Distinctiveness and Hedge Fund Performance,” Zheng Sun, Ashley Wang, and Lu Zheng, Review of Financial Studies, 25 (1), January, (2012):96-143. (Journal link)
“The Good or the Bad? Which Mutual Fund Managers Join Hedge Funds?” Prachi Deuskar, Joshua M. Pollet, Z. Jay Wang, and Lu Zheng, Review of Financial Studies, 24 (9), September, (2011):3008-3024. (Journal link)
“Side-by-Side Management of Hedge Funds and Mutual Funds,” Tom Nohel, Z. Jay Wang, and Lu Zheng, Review of Financial Studies, 23 (6), June, (2010):2342-2373. (Journal link)
“The ABCs of Mutual Funds: On the Introduction of Multiple Share Classes,” Vikram K. Nanda, Z. Jay Wang, and Lu Zheng, Journal of Financial Intermediation, 18 (3), July, (2009):329-361. (Journal link)
“Investor Flows and Stock Market Returns,” Brian Boyer and Lu Zheng, Journal of Empirical Finance, 16 (1), January, (2009):87-100. (Journal link)
“Unobserved Actions of Mutual Funds,“ Marcin T. Kacperczyk, Clemens Sialm, and Lu Zheng, Review of Financial Studies, 21 (6), November, (2008):2379-2416. (Lead article) (Journal link)
“Tax-Loss Selling and the January Effect: Evidence from Municipal Bond Closed-End Funds,” Laura T. Starks, Li Yong, and Lu Zheng, Journal of Finance, 61 (6), December, (2006):3049-3067. (Journal link)
“Industry Concentration and Mutual Fund Performance,” Marcin T. Kacperczyk, Clemens Sialm, and Lu Zheng, Journal of Investment Management, 5 (1), First Quarter, (2007). (Journal link)
“Are Investors Moonstruck? Lunar Phases and Stock Returns,” Lu Zheng, Kathy Yuan, and Qiaoqiao Zhu, Journal of Empirical Finance, 13 (1), January, (2006):1-23. (Journal link)
“On the Industry Concentration of Actively Managed Equity Mutual Funds,“ Marcin T. Kacperczyk, Clemens Sialm, and Lu Zheng, Journal of Finance, 60 (4), August, (2005):1983-2011. (Journal link)
- Nominated for the Smith Breeden award for the best paper in Journal of Finance.
“Out of Sight, Out of Mind: The Effects of Expenses on Mutual Fund Flows,” Brad M. Barber, Terrance Odean, and Lu Zheng, Journal of Business, 78 (6), (2005):2095-2120. (Journal link)
“Family Values and the Star Phenomenon: Strategies of Mutual Fund Families,” Vikram Nanda, Z. Jay Wang, and Lu Zheng, Review of Financial Studies, 17 (3), July, (2004):667-698. (Journal link)
“Institutional Trading and Stock Returns,” Fang Cai and Lu Zheng, Finance Research Letters, 1 (3), September, (2004):178-189. (Journal link)
“Is Money Smart? A Study of Mutual Fund Investors’ Fund Selection Ability,” Lu Zheng, Journal of Finance, 54 (3), June, (1999):901-933. (Journal link)
- Nominated for the Smith Breeden award for the best paper in Journal of Finance.
Working Papers
“Do Mutual Funds Walk the Talk? A Textual Analysis of Risk Disclosure by Mutual Funds,” 2020, with Jinfei Sheng and Nan Xu.
“Tracking Biased Weights: Asset Pricing Implications of Value-Weighted Indexing,” 2020, with with Hao Jiang and Dimitri Vayanos.
“Beware of Chasing Yield: Bond Fund Yield, Flows and Performance,” 2020, with Hao Jiang and Lily Li.
“The Start Matters: Time-Varying Investor Demand, Hedge Fund Inceptions and Performance,” 2017, with Lin Sun and Zheng Sun.
“Impact of Religious Belief on Asset Management Industry,” 2018, with John Bae and Zheng Sun.
“Work Experience and Managerial Performance: Evidence from Chinese Mutual Funds,” with Songnan Huang, Jing Shi, Lu Zheng, and Qiaoqiao Zhu, 2014.
“Aggregate Hedge Fund Flows and Asset Returns,” with Ashley Wang and Lu Zheng, August 2008.
“The Frequency of Mutual Fund Portfolio Disclosure,” with Weili Ge and Lu Zheng, March 2006.
Media Coverage
Wall Street Journal 2021 (Link)
Barron’s 2021(Link)
Fortune 2021 (Link)
Bloomberg.com 2021 (Link)
Washington Post 2021 (Link)
Forbes 2021 (Link)
Wall Street Journal, May 10, 2013.
New York Times, January 25, 2009.
“Conflicts in Side-by-Side Management: Mutual Funds Suffer When Managers Also Run Hedge Funds,” Money Management Executive, 19 March, 2007
“Side By Side Surprise,” by Michael Shari, Institutional Investor Magazine, February 7, 2007
“Got Conflicts?,” Registered Rep, February 1, 2007.
“Dual Fund Management Can Pose Conflict,” Bloomberg.com, November 27, 2006
“Is Your Fund Manager Two-Timing You? — As Hedge and Mutual Funds Increasingly Share Overseers, Critics Fret About Small Investors,” Wall Street Journal, November 1, 2006
“It Pays to Know Your Fund Manager — And It’s Easier than It Used To Be,” The Wall Street Journal Asia, October 16, 2006
“Your Fund Manager’s Secrets — Many New Facts Are Available On the People Who Pick Stocks; Making the Best Use of It All,” Wall Street Journal, October 14, 2006.
“A New Way to Gauge Mutual Funds: Study M easures Performance Against Past Holdings To Calculate ‘Return Gap’,” Wall Street Journal, March 22, 2006
“Is Your Manager Earnings His Keep? One Way to Tell is to Use the Fund’s Old Portfolio as a Benchmark,” Business Week, March 20, 2006
“Strategies: A Fund vs. Its Former Self,” New York Times, January 8, 2006
“Know What You’re Getting When You Buy a Load Fund,” The Associated Press, August 2, 2005
“Multiple Fund Share Classes Hurt Returns,” CBS MarketWatch, July 31, 2005
“Don’t Count Growth: Down And Out,” Investor’s Business Daily, February 10, 2005
“(Rich) man in the moon,” The Jerusalem Post, November 19, 2004
“Study: Managers try to create ‘star funds’: Luck, not business acumen, is leading factor, author says,” Ann Arbor News, May 24, 2004 (story also appeared in other Booth newspapers)
“Star-Strangled,” The Evening Standard, May 18, 2004
“Broken bonds of trust in banks,” The Evening Standard, May 18, 2004
“Star Mutual Funds 1,” Michigan Radio, May 10, 2004
“Why hot mutual funds don’t always stay hot,” Chicago Sun-Times, May 10, 2004
“A Week’s Worth,” Christian Science Monitor, May 10, 2004
“Briefing: Be wary of ‘star’ funds, U-M study says” Ann Arbor News, May 6, 2004
“Stock-Picking Takes Concentration,” TheStreet.com, April 26, 2004
“Study debunks diversity dogma: Portfolio Concentration,” Financial Times, April 19, 2004
“Strategies: Diversify! Diversify! Well, Not So Fast,” New York Times, April 11, 2004
“Despite funds study results, most investors aren’t stupid,” Charleston Gazette, April 4, 2004
“Maybe Investors Aren’t Stupid After All: Oft-Cited Study Is Revised,” Wall Street Journal, March 31, 2004
“Above All Else, Focus: A concentrated fund manager carefully selects about 30 stocks for his basket — and then watches it very closely,” Institutional Investor, March 23, 2004
“Money: Managing Your Money: Outing the Other Scandal,” The Sunday Oregonian, December 21, 2003
“Focused Funds Go Further With Fewer Diversify Or Worsify: Holding more securities . . .” Investors’ Business Daily, November 25, 2003
“Fund Track,” Wall Street Journal Abstracts, November 25, 2003
“Skilled Fund Managers Don’t Diversify Says Study.” Financial Planning Magazine, November 26, 2003
“Money Still Pours Into Stock Funds . . .” The Wall Street Journal Online, November 26, 2003
“Watch Out for Expenses,” Michigan Radio, April 21, 2003
“Pay attention to expenses of mutual funds …,” Treasure Coast Business Journal, May 1, 2003
“Mutual Funds Change Monikers, But Not Holdings…,” The Wall Street Journal, March 14, 2003
“Investors advised to beware gold fever,” Chicago Sun-Times, March 17, 2003
NPR, Market Place, March 19, 2002
“Moonstruck stock investors find another reason to howl,” Financial Times, January 10, 2002
“Celestial investing: What a little moonlight can do,” Economist, October 20th , 2001
Business Week, October 23, 2000
TheStreet.com, June 19, 1999