Publications


2015

Nyamute, W, Lishenga J.  2015.  The Effect of Investment Style on Portfolio Performance: Evidence from the Nairobi Securities Exchange. International Journal of Multidisciplinary Research and Development. 2(5):552-554. Abstract

The investors must trade to make a return and the choice of where to invest and how many times to trade
lies with the investor. This study sought to determine whether the investment styles adopted by the
investors on the Nairobi Securities Exchange have an effect on their portfolio performance. The
relationship was tested using multiple regression analysis on a sample of 385 individual retail investors.
The overall model was statistically significant indicating that investment style influences portfolio performance. Passive investment style and Growth oriented investment style have a significant
relationship with portfolio performance with growth having a negative effect while passive style has a
positive effect. The implication here is that investors who actively trade should cautiously evaluate the
implication on their portfolio to avoid the negative effects.
Keywords: Investment style, passive, active, value, growth, portfolio performance

Nyamute, W, Lishenga J, Oloko M.  2015.  The Relationship between Investor Behavior and Portfolio Performance at the Nairobi Securities Exchange. International Journal of Multidisciplinary Research and Development. 2(5):548-551. Abstractthe_relationship_between_investor_behavior_and_portfolio_performance_ay_nse.pdf

Abstract
Extreme unpredicted momentum in global indices and security prices associated with uncertainty and
unexplained stock price movements have made life difficult for a rational investor who relies on market
fundamentals to make investment decisions. This study attempted to determine the contribution of
investor behavior in influencing investor portfolio performance at the Nairobi Securities Exchange using
a sample of 385 individual stock investors. The relationship between investor behavior and portfolio
performance was tested using multiple regression. The overall model was statistically significant
indicating that investor behavior influences portfolio performance with herding and disposition effect
having a positive effect on portfolio performance while overconfidence has a negative effect on
performance. The findings provide an eye-opener and basis of appreciation of the effect of behavioral
biases on the results of trading activities. Stock market players can use these findings to understand the
market dynamics and incorporate behavioral factors in analysing capital markets performance.
Keywords: Investor behavior, herding, overconfidence, disposition effect and portfolio performance

2012

2011

1996

LISHENGA, JL.  1996.   "Profitability of Momentum Strategies in Emerging Markets: Evidence From Nairobi Stock Exchange". The 5th International Operations Research of Eastern Africa Conference, . , White Sands Hotel, Dar es Salaam, Tanzania : Third World Planning Review Vol. 22. No.4 Abstract

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This paper tests the profitability of momentum strategies in Kenya, an emerging market for the period 1995 to 2007. Analysis revealed that Nairobi Stock Exchange (NSE) exhibit medium term return continuation over the entire sample period and the sub-periods. We used RSS results to evaluate the influence of transaction costs, calendar effects, risk factors and other reported momentum characteristics on momentum profitability. We employ WRSS results to discriminate between the two diametrically opposed causes for the profitability of momentum strategies:.  Our results show that, consistent with the evidence elsewhere, momentum is an anomaly; being driven by continuation in the idiosyncratic component of individual-security, rather than by cross-sectional differences in expected return and risks.

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