This study examines whether funds of hedge funds (FOHFs) provide superior before-fee performance through managers' fund selection, style allocation, and active management abilities. Using reported holdings of SEC-registered FOHFs, we find that FOHF managers have fund selection abilities, as...

We examine the performance life cycle of hedge funds. Performance declines with age are pervasive, not just for the average fund, but also for past winners and for funds with characteristics that predict cross-sectional returns. Fund growth and decreasing performance incentives appear to...