This paper investigates the relationship between upside potential and future hedge fund returns. We measure upside potential based on the maximum monthly returns of hedge funds (MAX) over a fixed time interval, and show that MAX successfully predicts cross-sectional differences in future fund...

This paper investigates hedge funds' ability to time industry-specific returns and shows that funds' timing ability in the manufacturing industry improves their future performance, probability of survival, and ability to attract more capital. The results indicate that best industry-timing hedge...

Performance manipulation can make a fund more attractive to investors and, more seriously, managers can intentionally misreport returns to enhance performance scores. This paper empirically investigates whether the manipulation-proof performance measure derived by Goetzmann et al. (2007) really...