In this study, Professor Brad M. Barber and co-author Terrance Odean from U.C. Berkeley report their common stock investment performance analysis from 166 investment clubs from February 1991 through January 1997.

They found that the average club tilted its common stock investment toward high-beta, small-cap growth stocks and turned over 65 percent of its portfolio annually. The average club lagged the performance of a broad-based market index and the performance of individual investors. Moreover, 60 percent of the clubs underperformed the index.

This paper won Barber and Odean the Graham and Dodd Award of Excellence from the Chartered Financial Analyst Institute.