Publication Type

Magazine Article

Version

Publisher’s Version

Publication Date

10-2011

Abstract

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.

Keywords

hedge funds, flagship funds, performance

Discipline

Finance and Financial Management

Research Areas

Finance

Publication

Hedge Fund Insights

First Page

2

Last Page

6

Publisher

BNP Paribus Hedge Fund Centre, Singapore Management University

City or Country

Singapore

Copyright Owner and License

BNP Paribus Hedge Fund Centre, Singapore Management University

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