We document cycles of innovation fueled by early-mover advantages in the hedge-fund industry. Our method involves clustering hedge funds based on their self-reported strategic risk profile at inception. The 'innovative funds', compared with their 'imitators', survive twice as long while...

Hedge funds are known to have liquidity-timing capability, but this might be conditional on aggregate market conditions. To test this, we analyze changes in the relation between hedge funds' stock market exposure and aggregate stock market liquidity. Employing an optimal changepoint approach, we...

The large global banks were at the heart of the global financial crisis. In response to the crisis, the international Financial Stability Forum was upgraded to the Financial Stability Board (FSB) in 2009, with the full participation of finance ministers and even heads of government. The newly...