Publication Type
Magazine Article
Version
Publisher’s Version
Publication Date
10-2013
Abstract
Fund managers may eschew financial rewards for the non-pecuniary benefits from investment management. They may be highly focused on leaving a legacy of stellar returns when they retire and prefer to preserve their ability to generate those returns by staying small. Others may prefer to run small firms so as to devote more of their time and energy into investment activities as opposed to managing people. We empirically zero in on such managers by focusing on funds that have delivered superior returns but do not take advantage of their stellar performance track records to grow capital aggressively. We find that such funds generate alphas that are 5.41 percent per year greater than those generated by funds in the same past performance cohort that take advantage of their track records to raise capital. Our findings cannot be explained by size, fee, or redemption term differentials.
Keywords
hedge funds, performance, alphas, track record
Discipline
Finance and Financial Management
Research Areas
Finance
Publication
Hedge Fund Insights
First Page
2
Last Page
8
Publisher
BNPP Hedge Fund Centre
City or Country
Singapore
Citation
Teo, Melvyn. 2013 October. Hedge Fund Managers who Eschew Asset Gathering. Hedge Fund Insights, 2-8.
Copyright Owner and License
BNP Paribus Hedge Fund Centre, Singapore Management University
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.