61 Pages Posted: 15 Oct 2012 Last revised: 30 Mar 2015
Date Written: March 23, 2013
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.
Keywords: hedge funds, asset management
JEL Classification: G11, G12, G23
Suggested Citation: Suggested Citation
Edelman, Daniel and Fung, William and Hsieh, David A., Exploring Uncharted Territories of the Hedge Fund Industry: Empirical Characteristics of Mega Hedge Fund Firms (March 23, 2013). Available at SSRN: https://ssrn.com/abstract=2161123 or http://dx.doi.org/10.2139/ssrn.2161123
By Russell Jame