Another literature examines whether asset managers or sell-side analysts are better able to collect private information on equities of corporations in their geographic area. For instance, Coval and Moskowitz (1999) nd that fund managers are better able to select stocks of rms headquartered nearby, while Cohen, Frazzini, and Malloy (2008) nd that fund managers with past educational ties to corporate managers overweight and outperform in the stocks of those corporations. This literature suggests that geographic proximity and/or social networks can aid the transfer of private information. Further, Sonney (2009) nds that European sell-side analysts with a country specialization outperform analysts with an industry specialization, suggesting that an understanding.
