Publication Type
Magazine 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
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
Citation
TEO, Melvyn.
(2011). Research Collection BNP Paribas Hedge Fund Centre. Hedge Fund Insights
, 2.
Available at: https://ink.library.smu.edu.sg/bnp_research/27
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.