Recent Studies from Central Michigan University Add New Data to Mathematics (Asymmetric Impact of Fed Rate Cuts on Growth and Value Mutual Fund Performance): Mathematics

2026 JAN 28 (NewsRx) -- By a News Reporter-Staff News Editor at Math Daily News -- Fresh data on mathematics are presented in a new report. According to news reporting from Mount Pleasant, Michigan, by NewsRx journalists, research stated, “This study investigates how U.S.”

Our news journalists obtained a quote from the research from Central Michigan University: “Federal Reserve interest rate cuts during the 2019-2020 easing cycle influenced the performance of equity mutual funds, with a particular emphasis on contrast between growth and value investment styles. Using an event study framework, we examine abnormal returns, cumulative abnormal returns, and risk-adjusted performance metrics, including those based on both 30 days static and rolling Jensen’s alpha and Sharpe ratios, across short-term (30-day) and long-term (6-month and 1-year) windows surrounding three major rate cut events. Our empirical results show that growth funds significantly outperform value funds following rate reductions, especially over longer horizons. This performance advantage is more pronounced in risk-adjusted measures and strengthens when incorporating rolling dynamics, indicating that and asymmetric sensitivity of fund styles to interest rate changes, shaped by differences in duration exposure and investor sentiment.”

According to the news reporters, the research concluded: “Overall, this study offers novel insights into how monetary policy influences fund-level dynamics beyond broad market movements and deepens the understanding of monetary transmission in asset management by incorporating time-varying performance metrics.”

For more information on this research see: Asymmetric Impact of Fed Rate Cuts on Growth and Value Mutual Fund Performance. Mathematics, 2025,14(1):24. (Mathematics - http://www.mdpi.com/journal/mathematics). The publisher for Mathematics is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/math14010024.

Our news editors report that additional information may be obtained by contacting Hairu Fan, Department of Statistics, Actuarial and Data Sciences, Central Michigan University, Mount Pleasant, MI 48859, United States. Additional authors for this research include Min Shu.

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