the “anomalous” properties of hedge fund returns, we observe the mechanisms used to price the fund's investment positions … greater discretion in pricing investment positions are more likely to have returns consistent with intentional smoothing … illiquidity vs. misreporting, investment style and portfolio characteristics explain 14.0-24.3 percent of the variation in our …

We empirically analyze the nature of returns to scale in active mutual fund management. We find strong evidence of … that avoid econometric biases are insignificant. We also find that the active management industry has become more skilled …