Professor of Finance
The article investigates how fund families cross-subsidize high value funds at the disbursement of low-value funds in the U.S. The mutual fund industry is qualified through the control of fund family organizations. It was found out that fund families incline to reallocate performance among funds within the family leaving in a positive performance gap between high-value and low-value funds. The level of cross-subsidization is associated to family characteristics but for large fund families.