Managers’ Skills in Periods of Crisis: The Case of Proximity to Armed Conflict
Purpose: The skillful use of selectivity and market timing by investment fund managers is an important determinant of fund results. This is especially important in times of crisis, as making the right decisions can help minimize losses. The aim of the research is to find out whether investment fund managers skillfully use market timing during crisis periods. Design/Methodology/Approach: The Treynor-Mazuy model for Polish market equity funds was used for the study. The choice of the Polish market was related to the proximity of the armed conflict, a crisis that has a powerful impact on the capital market. In addition, the stability of the results obtained during crisis periods was examined. Findings: The results obtained for Polish market equity funds indicate that managers use a different strategy during crisis periods. Practical Implications: The results obtained will help the investor make the appropriate investment decision in times of crisis. Originality/Value: The added value of the work is the examination of the application of management skills in periods of crisis and the stability of the obtained results.