Consistent with Chevalier and Ellison (1999), we find that mutual fund managers with degrees from elite universities tend to outperform their counterparts from less elite universities. The abnormal performance can be characterized as “fast performance,” the stocks they select realize excess...

[enter Abstract Body]Long-short hedge funds are often very highly levered, despite the costs of leverage that became apparent during the LTCM crisis in 1998 and the more recent episode in 2008. This note explores potential market imperfections that may explain the use of leverage

Performance fees that are designed to incentivize money managers to exert more effort may also distort a manager's risk choices. In this paper, we analyze the impact of the standard performance fee contract that includes what is known as a high-water mark provision. We investigate the effect the...