Industry-based style investing

Russell Jame, Qing Tong

Research output: Contribution to journalArticlepeer-review

27 Scopus citations


Motivated by the style investing model of Barberis and Shleifer (2003), we examine the industry-wide investment decisions of retail investors. We find that retail investor industry demand is highly correlated and strongly related to past industry returns. Moreover, industries heavily bought by retail investors over the past year significantly underperform industries heavily sold over the subsequent year. Similarly, stocks in industries heavily bought by retail investors underperform stocks in industries heavily sold, even after controlling for firm-level demand. Our results suggest that industry-wide categorization influences the investment decisions of retail investors and has a significant impact on asset prices.

Original languageEnglish
Pages (from-to)110-130
Number of pages21
JournalJournal of Financial Markets
Issue number1
StatePublished - Jun 2014


  • Asset pricing
  • Industry
  • Retail investors
  • Style investing
  • Trading

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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