ABSTRACT This paper proposes a new measure of information sharing within fund families inferred from trading activity and examines its evolution and managerial drivers. The findings reveal a declining trend in internal information exchange over time, with higher information flow in families characterized by greater managerial interaction. Moreover, greater information diffusion is associated with weaker incentives to generate investment ideas and exert effort, leading to poorer outcomes. Specifically, increased internal information sharing negatively affects outcomes because it reduces the perceived exclusivity of investment strategies. These findings should be interpreted as robust associations consistent with endogenous organizational choices rather than causal effects.
Gimeno et al. (2026) studied this question.