In the interest of consumer financial protection, most households do not have access to the hedge fund market. We show …, retail hedge fund investors have access to higher performance, performance persistence, and alpha …

We exploit detailed transaction and position data for a sample of long-short equity hedge funds to study the trading … activity of fundamental investors. We find that hedge funds exhibit skill in opening positions, but that they close their … limits of arbitrage: hedge funds close positions early in order to reallocate their capital to more profitable investments …

When an investor delegates portfolio management to a hedge fund manager, whose risk-taking preference governs? Single … maximize their own well-being. Empirical validation is hard to come by, as each hedge fund traces out only a few points on that …

This article examines performance persistence of 773 hedge funds from the period 1990 to 2003. The sample is free of …

This paper examines in detail the literature review of hedge funds performance using a sample of 773 hedge funds from … Asset Center (AAC). It was formed in July 1999 as an independent publishing company for hedge funds and in 2006 Barclay … hedge acquired the AAC database. We derived to the conclusion that the results are mixed due to alphas, contingency tables …

This study shows that trade creditors extend a negative response to hedge fund activism. Relative to control firms …, target firms' accounts payable decreases by 28%, post activist intervention by hedge funds. This reduction is due to supply …-side factors, highlighting suppliers' expropriation concerns. The study provides novel evidence that the repercussions of hedge …

Hedge fund gross U.S. Treasury (UST) exposures doubled from 2018 to February 2020 to $2.4 trillion, primarily driven by … UST market turmoil, the average UST trading hedge fund had a return of -7% and reduced its UST exposure by close to 20 …%, despite relatively unchanged bilateral repo volumes and haircuts. Analyzing hedge fund-creditor borrowing data, we find the …

Hedge funds raise capital largely from institutional investors. Small individual investors may feel left out but … probably do not realize what a blessing that really is. Simple strategies way within their reach have outperformed hedge funds … in terms of return and risk-adjusted return over the last 10, 15, and 20 years. Worse still, neither hedge funds really …

With continued strong inflows into hedge fund strategies, it is imperative for researchers to study if hedge funds are … still worth their high fees. In an updated and comprehensive study covering both North American and Asian hedge funds, we … find market risk factors explain up to 81% of hedge fund portfolios’ variance, while out-of-sample clones have up to 98 …

We explore the value of diversity for hedge funds. We show that fund management teams with heterogeneous education … exploits the demographic diversity at hedge fund founders' hometowns help address endogeneity. Diverse teams outpace … downside risks. Diversity allows hedge funds to circumvent capacity constraints. Consequently, performance persists more for …