Abstract

http://ssrn.com/abstract=2260370
 
 

References (14)



 


 



Alternative Marketing for Alternative Investments


Yan Lu


University of Florida

David K. Musto


University of Pennsylvania - Finance Department

Sugata Ray


University of Florida - Warrington College of Business Administration

March 2014


Abstract:     
Until recently, hedge funds could advertise only indirectly, because direct solicitation was banned. We analyze the causes and effects of indirect advertising by relating the ads for hedge funds’ parent institutions and sibling mutual funds back to the hedge funds’ circumstances, and forward to their flows and performance. We find that abnormally low net inflows predicts the ads, which in turn leads to increased future net inflows, indicating that ads boost sagging flows. We also find that the incidence of large losses increases after ads. Thus, we conclude that indirect advertising is effective but poses some risk to consumers.

Number of Pages in PDF File: 46

Keywords: Hedge fund, advertising ban

working papers series


Download This Paper

Date posted: May 4, 2013 ; Last revised: March 15, 2014

Suggested Citation

Lu, Yan and Musto, David K. and Ray, Sugata, Alternative Marketing for Alternative Investments (March 2014). Available at SSRN: http://ssrn.com/abstract=2260370 or http://dx.doi.org/10.2139/ssrn.2260370

Contact Information

Yan Lu
University of Florida ( email )
Gainesville, FL 32610-0496
United States
David K. Musto
University of Pennsylvania - Finance Department ( email )
The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States

Sugata Ray (Contact Author)
University of Florida - Warrington College of Business Administration ( email )
Gainesville, FL 32611
United States
Feedback to SSRN


Paper statistics
Abstract Views: 2,867
Downloads: 326
Download Rank: 51,781
References:  14

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.516 seconds