A Leopard Does Not Change His Spots – Evidence of Activism Persistence in the Hedge Fund Industry
39 Pages Posted: 18 Feb 2010 Last revised: 30 May 2010
Date Written: February 18, 2010
This paper investigates hedge fund performance persistence through examination of actual fund behavior rather than self-reported returns. We propose new activism indexes. We show that past activism is positively correlated with fund orientation toward confrontational activist behavior with respect to future purchases. We show that hedge fund activism is positively correlated the size of required minimum investment and manager graduation from a top MBA program.
Keywords: Hedge Fund, Persistence, Activism
JEL Classification: G2
Suggested Citation: Suggested Citation