To understand the nature of hedge fund managers' skills, we study the implementation of risk arbitrage by hedge funds … managers' ability to predict or affect the outcome of merger and acquisition deals; rather, hedge fund managers' superior …

managers that are contrarian — earn alpha of 2.4% per year. Contrarian hedge fund managers tend to trade profitably with all … other manager types, especially when purchasing stocks from momentum-oriented hedge and mutual fund managers. Superior …

using return correlations. Our method improves identification of skilled managers, as evidenced by a strong ability to … groupings as well as the best managers within each group …

, while mutual fund strategies are largely trend following. The only institutional performers---the 2/3 of hedge fund managers … that are contrarian---earn alpha of 2.4% per year. Contrarian hedge fund managers tend to trade profitably with all other … manager types, especially when purchasing stocks from momentum-oriented hedge and mutual fund managers. Superior contrarian …

by hedge fund managers. Three quarters of hedge funds shifted their investment styles at least once over the period from …-looking. Instead, we show evidence that managers of style-shifting funds exhibit both style-timing ability and the skill of generating …