Lu Zheng                       

Professor of Finance

Ph.D., Yale University

The Paul Merage School of Business

University of California, Irvine

Irvine, CA 92697-3125

Telephone: (949) 824-8365








My Research Interests

mutual fund performance and structure

trading behavior of individual and institutional investors in mutual funds and stocks

the welfare effect of the strategies of mutual funds and fund families

Curriculum Vitae



 “The Road Less Traveled: Strategy Distinctiveness and Hedge Fund Performance,” 2011, with Zheng Sun and Ashley Wang, The Review of Financial Studies, forthcoming.


“The Good, the Bad or the Expensive? Which Mutual Fund Managers Join Hedge Funds?” 2011, with
Prachi Deuskar , Joshua Matthew Pollet and Zhi Jay Wang, 
The Review of Financial Studies, forthcoming.


Side-by-Side Management of Hedge Funds and Mutual Funds," 2009, with Tom Nohel and Zhi Wang, The Review of Financial Studies, forthcoming.


"The ABCs of Mutual Funds: On the Introduction of Multiple Share Classes," 2009, with Vikram Nanda and Jay Wang, Journal of Financial Intermediation, 18 (3), 329-361


“Investor Flows and Stock Market Returns,” 2009, with Brian Boyer, Journal of Empirical Finance, 16 (1), 87-100.


Unobesrved Actions of Mutual Funds," 2008, with Marcin Kacperczyk and Clemens Sialm, The Review of Financial Studies, 21, 2379-2416. (Lead article)


"Tax-loss Selling and the January Effect: Evidence from Municipal Bond Closed-End Funds," 2006, with Laura T. Starks and Li Yong, The Journal of Finance, 61 (6), 3049-3067.


"Industry Concentration and Mutual Fund Performance," 2007, with Marcin T. Kacperczyk and Clemens Sialm, The Journal of Investment Management, 5 (1)


“Are Investors Moonstruck? – Lunar Phases and Stock Returns,” 2006, with Kathy Yuan and Qiaoqiao Zhu, The Journal of Empirical Finance, 13, 1-23.


“On the Industry Concentration of Actively Managed Equity Mutual Funds,” 2005, with Marcin Kacperczyk and Clemens Sialm, The Journal of Finance 60 (4), 1983-2011.


“Out of Sight, Out of Mind: The Effects of Expenses on Mutual Fund Flows," 2005, with Brad Barber and Terry Odean, The Journal of Business 78 (6), 2095-2120.


“Family Values and the Star Phenomenon: Strategies of Mutual Fund Families,”  2004, with Vikram Nanda and Jay Wang, The Review of Financial Studies 17 (3), 667-698.


 “Institutional Trading and Stock Returns," 2004, with Fang Cai, Finance Research Letters 1 (3), 178-189.


“Is Money Smart? – A Study of Mutual Fund Investors’ Fund Selection Ability,” 1999, The Journal of Finance 54 (3), 901 – 933.



Working Papers

“Does Your Fund Manager Trade on the News? Media Coverage, Mutual Fund Trading and Performance,” 2009, with Lily H. Fang  and Joel Peress.


“Aggregate Hedge Flows and Asset Returns,” 2008, with Ashley Wang.


"The Frequency of Mutual Fund Portfolio Disclosure," 2006, with Weili Ge.


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Clippings from the Financial Press about My Research

“Side By Side Surprise” by Michael Shari, Institutional Investor Magazine, February 2007.

"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,” Institutional Investor Magazine, February 7, 2007.


"Got Conflicts?," Registered Rep, February 1, 2007.

"Dual Fund Management Can Pose Conflict,", 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,” The 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 saysAnn Arbor News, May 6, 2004


 "Stock-Picking Takes Concentration,”, 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 . . .”   Institutional Investor, March 1, 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., June 19, 1999.