This study investigated how equity investment fund managers in the United States (U.S) adjust their risk-taking decisions in response to economic policy uncertainty. To this end, a sample of EDYG and EDYB funds was analyzed from January 2010 to March 2022, with monthly data comprising 12 years of analysis. The main results indicated a negative effect of economic policy uncertainty on fund risk-taking. We also employed an alternative measure of uncertainty and the results remained. Our analysis indicates that equity fund managers tend to be more conservative after periods of high economic policy uncertainty. This work contributes to individual investors being able to improve their investment decision-making process by paying attention to periods of high economic policy uncertainty and the strategic changes made by fund managers.
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