Motivated by the stellar performance of flagship funds such as the Renaissance Medallion fund, we ask whether hedge fund firms (e.g. Renaissance Technologies) have incentives to protect the performance of their flagship funds (e.g. Medallion). We find that the flagship fund tends to outperform other funds within the fund family. The fees and redemption terms of non-flagship funds at launch is correlated with the past performance of the flagship fund. Finally, flagship fund performance has a positive impact on net flows into the other funds within the same family.
hedge funds, flagship funds, performance
Finance and Financial Management
Hedge Fund Insights
BNP Paribus Hedge Fund Centre, Singapore Management University
City or Country
(2011). Research Collection BNP Paribas Hedge Fund Centre. Hedge Fund Insights
Available at: http://ink.library.smu.edu.sg/bnp_research/26