A study was done on the relationship between stock returns and institutional stock ownership from 1982 to 1994. It was found that stocks with high institutional ownership outperforms those with low institutional ownership by about 0.6% every month. (Source: Institutional ownership and long-term stock returns by Galina Ovtcharova)
A research was done studying the trading activity of the mutual fund industry from 1975 to 1994 to determine whether funds “herd” when they trade stocks and to investigate the impact of herding on stock prices. Stocks that they buy outperform stocks they sell by 4% during the following six months. (Source: Mutual Fund Herding and the Impact on Stock Prices by Russ Wermers, 1999)