Abstract
Factors that affect fund and equity performance are one of the most important issues for institutional and individual investors. Previous studies have investigated several factors affecting the performance. Taking a social network approach, this study examines fund family density and centrality indices in the network constructed from fund holdings. We attempt to investigate the effect of organizational diseconomies on fund performance and the influence of centrality indices of social network of holdings on their performance. The results show that centralities have a positive correlation with stock price and fund value. Stock degree and stock betweenness perform better than the factor of outside institutional investment in forecasting stock price. Fund degree and fund closeness can estimate fund value. Finally, we show that the existence of neglected-firm effect is significant in Taiwan equity fund.