Does managerial skill exist? - A study of value added and its impact on mutual fund performance

Sammanfattning: This thesis investigates and compares the relationship between managerial skill and its impact on open-end mutual fund performance in terms of net alpha. The approach is to study managerial skill measured in terms of value added. Using descriptive statistics with one-tailed t-test of value added over the period between January 2008 and December 2017, the results obtained suggest persistency in value added and thus that there is strong evidence that managerial skill exists.