Exploring Uncharted Territories of the Hedge Fund Industry: Empirical Characteristics of Mega Hedge Fund Firms
Alternative Investment Solutions
London Business School
David A. Hsieh
Duke University - Fuqua School of Business; Duke University - Department of Economics; National Bureau of Economic Research (NBER)
October 12, 2012
This paper investigates mega hedge fund management companies that manage over 50% of the industry’s assets, incorporating previously unavailable data from those that do not report to commercial databases. We document similarities among mega firms that report performance to commercial databases compared to those that do not. We show that the largest divergences between the performance reporting and non-reporting can be traced to differential exposure to credit markets. Thus the performance of hard-to-observe mega firms can be inferred from observable data. This conclusion is robust to delisting bias and the presence of serially correlated returns.
Number of Pages in PDF File: 53
Keywords: hedge funds, asset management
JEL Classification: G11, G12, G23working papers series
Date posted: October 15, 2012
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