Abstract Mutual fund families set and report values of their private startup holdings, which affect the net asset value (NAV) at investors buy/sell shares. We test three hypotheses related to valuation practice: (i) information cost/access, (ii) litigation risk, (iii) strategic NAV management. Consistent with (i), larger PE holdings and/or stronger access update valuations more frequently in ab...

We study intentional herding in investment styles by mutual funds, and its consequences. find that style is significant persistent. Herding tends to increase after periods of high market volatility decrease with sentiment, consistent the character herding. Furthermore, we related changes dynamics. Finally, certain temporarily funds’ performance, whereas it reduces flows. Overall, results illust...