Incentive fees for money managers are frequently accompanied by high-water mark provisions that condition the payment of the performance fee upon exceeding the previously achieved maximum share value. In this paper, we show that hedge fund performance fees are valuable to money managers, and...

This study was based on the hypothesis that a fund manager has incentive to take more risk with funds to conceal his actual management ability. A theoretical model was built to test this hypothesis. According to the model, when a fund manager's ability is not observable, a poor fund manager may...

Mutual funds marketed as socially responsible funds (SRFs) face greater apparent burdens due to further non-financial filters applied to investments than conventional funds, that also restrict their investible universe. There is well reported evidence of unnecessary risk shifting and window...