Publication Type

Journal Article

Version

Publisher’s Version

Publication Date

12-2011

Abstract

We explore agency issues within hedge fund firms. We find that firms that launch many funds tend to underperform other firms by between 3 to 5 percent per year after adjusting for risk. These findings are strongest for firms offering funds that pursue many distinct strategies, invest in a variety of geographical regions, locate in a gamut of countries, and offer different base currencies. Our results allow fund investors to distinguish, ex-ante, firms that focus on delivering alpha from those that focus on gathering assets.

Keywords

hedge funds, agencies, investment strategies, assets

Discipline

Finance and Financial Management

Publication

Hedge Fund Insights

First Page

2-6

Publisher

BNP Paribus Hedge Fund Centre, Singapore Management University

City or Country

Singapore

Share

COinS