Footnote:
In: Journal of Financial and Quantitative Analysis (JFQA), Vol. 44, No. 2, 2009
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 1, 2008 erstellt
Description:
Recently, there has been rapid growth in the assets managed by ldquo;hedged mutual fundsrdquo;mdash; mutual funds mimicking hedge fund strategies.We examine the performance of these funds relative to hedge funds and traditional mutual funds. Despite using similar trading strategies, hedged mutual funds underperform hedge funds. We attribute this finding to hedge funds' lighter regulation and better incentives. Conversely, hedged mutual funds outperform traditional mutual funds. Notably, this superior performance is driven by managers with experience implementing hedge fund strategies. Our findings have implications for investors seeking hedge-fund-like payoffs at a lower cost and within the comfort of a regulated environment