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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

Orly Sade

Hebrew University of Jerusalem - Department of Finance

Emanuel Zur

University of Maryland - Robert H. Smith School of Business

Date Written: February 18, 2010

Abstract

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

Sade, Orly and Zur, Emanuel, A Leopard Does Not Change His Spots – Evidence of Activism Persistence in the Hedge Fund Industry (February 18, 2010). Available at SSRN: https://ssrn.com/abstract=1554986 or http://dx.doi.org/10.2139/ssrn.1554986

Orly Sade (Contact Author)

Hebrew University of Jerusalem - Department of Finance ( email )

Mount Scopus
Jerusalem, 91905
Israel
972 2 588 3227 (Phone)

Emanuel Zur

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

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