We assess the abilities and the role of buy-side analysts within mutual fund families by analyzing
mutual funds managed by buy-side analysts from fourteen fund families. Buy-side analysts
exhibit investment abilities by realizing positive style- and risk-adjusted returns and
generating superior risk-return tradeoffs. Analysts' skills have a positive impact on the performance
of funds from the same family. Although some managers benefit from closely following
their buy-side analysts' ideas, research generated by these analysts is generally
being underutilized by affiliated managers. The underutilization is consistent with longertenured
managers choosing to forgo some of the analysts' ideas due to career considerations.