Analyzing a novel sample of hedge fund daily returns from Bloomberg, we show a seasonal pattern in their risk taking. During earlier months of a year, poorly performing funds reduce their risk. The reduction is stronger for funds with higher management fees, shorter redemption periods, and...

This paper finds that remunerative benefits accrue to managers of new hedge funds launched after the implementation of the Volcker Rule (section 610 of the 2010 Dodd-Frank Act) if their previous employer is a systemically important US bank. We attribute this phenomenon to changes in how...

Various studies have analyzed the determinants of hedge fund performance. The majority of them, however, come to contradictory conclusions with respect to the direction of influence of different factors on fund performance. The key reason for the inconsistencies is the highly dynamic nature of...

This paper investigates the determinants of the average level of risk of hedge funds, which provide high liquidity to their investors and report their returns on a daily basis. We find that larger funds and funds charging higher incentive fees exhibit lower risk, whereas funds charging higher...

We examine how childcare inequalities in the home affect the work productivity of women, using unique data on the family structures of hedge fund managers, and the shock from school closures during the COVID-19 lockdowns. We show that funds with female managers miss out on a 7% excess return on...

Using a sample of mergers and acquisitions (M&As) from 1995 to 2009, we find that the proportion of cash payment increases with hedge fund holdings in the target firms. This effect is more pronounced when bidder stocks are less liquid, hedge fund shareholders in the target firms have higher...

Enhanced regulatory oversight and greater regulatory uncertainty in the aftermath of the 2007/08 financial crisis contribute to changes in the liquidity provision profile of hedge funds. Analysing a sample of 1,624 funds operating during these major shifts in regulatory policy, we find that...

We find no evidence that hedge funds manipulate stock prices from 2011 to 2019, while confirming the stock price manipulation pattern previously documented between 2000 and 2010. Stocks held by hedge funds exhibit positive abnormal returns and then reversals at quarter-end in the earlier period;...