Soydemir, Gökçe; Smolarski, Jan; Shin, Sangheon - In: Journal of Economics and Finance 38 (2014) 1, pp. 133-149
We use proprietary data to examine factors that lead hedge fund managers to offer hurdle rates and investigate relative hedge fund performance based on risk-adjusted returns. Using data from 3,571 hedge funds over a 15 year period, we find that funds that do not offer a hurdle rate outperform...