The best-performing funds were those with the highest percentage of losses realized (i.e., the least loss averse). The best-performing funds are less than 1.2 times more likely to sell a winning position than a losing position. The worst-performing funds had the lowest percentage of realized losses. In fact, the worst performing funds showed about the same degree of loss aversion as the individual investors. They were 1.7 times more likely to sell a winning position than a losing position.
