We use a novel database to study the timeliness of hedge fund managers' voluntary disclosures of monthly fund returns. We show that funds disclose returns at a much slower rate when performance is poor. Funds often release the returns of two or more months together in clusters. These clusters...

We find that capital flows to hedge funds in different countries are influenced by the strength and the enforcement of investor protection laws in these countries. Hedge funds that are located in weak investor protection countries exhibit a greater sensitivity of investor outflow to poor...

We use a novel database to study timeliness of hedge-fund monthly performance disclosures. Managers engage in strategic timing: poor monthly returns are reported with delay, sometimes clustered with stronger subsequent performance, suggestive of ‘performance smoothing'. We posit that...

We analyze risk shifting by poorly performing hedge funds - and test predictions on the extent to which risk choices are related to the fund's incentive contract, investment horizon and dissemination of performance information. Consistent with theoretical arguments we find that the propensity...

Using new data on the hedge fund investments of institutional investors, this paper is the first to examine the determinants and consequences of intermediation in the hedge fund industry. Our empirical analysis reveals several findings consistent with predictions from the theoretical literature....