As shown in the literature, delivering alpha over time and in different market environments is very difficult and relatively few managers have the ability to do so. Empirical analysis has shown that the main drivers of return for Long/Short Equity hedge funds are a stock market factor and the...

Compared to mutual funds, hedge funds prefer smaller, opaque value securities, and have higher turnover and more active share bets. Decomposing returns into three components, we find that hedge funds are better than mutual funds at stock picking by only 1.32% per year on a value-weighted basis,...

Recent studies have documented that institutional investors trade contrary to the predictions of the book-to market anomaly. We examine whether a prominent sub-group of institutional investors, namely hedge funds, differ from other institutions in terms of their trading behavior with respect to...