We propose and implement a procedure to dynamically hedge climate change risk. To create our hedge target, we extract … hedge portfolios. We discipline the exercise by using third-party ESG scores of firms to model their climate risk exposures … managing climate risk …

-generating strategy typically lowers the fund's risk-adjusted excess return due to frictions such as price pressure. When the manager is … via both management and incentive fees, we show that (i) the high-powered incentive fees encourage excessive risk taking … sufficiently poor fund performances substantially curtail managerial risk-taking, provide strong incentives to de-leverage, and …

, investors collected 36 cents for every dollar earned on their invested capital (over a risk-free hurdle rate and before … adjusting for any risk). In the cross-section of funds, there is a substantial disconnect between lifetime performance and …

risk capital starting August 8th. Our simulations point to two unwinds---a mini-unwind on August 1st starting at 10:45am …

profiles. This nonlinear risk exposure combines with large allocations, typical among investors in alternatives, to produce …