Gao, Chao
[VerfasserIn]
;
Haight, Tim
[Sonstige Person, Familie und Körperschaft];
Yin, Chengdong
[Sonstige Person, Familie und Körperschaft];
Zhang, Chengsi
[Sonstige Person, Familie und Körperschaft]
The Performance Life Cycle of Hedge Funds
: Can Investors Achieve Lasting Performance?
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 26, 2019 erstellt
Beschreibung:
We examine the performance life cycle of hedge funds. Performance declines with age are pervasive, not just for the average fund, but also for past winners and for funds with characteristics that predict cross-sectional returns. Fund growth and decreasing performance incentives appear to contribute to performance declines with age. Performance declines in early years coincide with a sharp drop in strategy distinctiveness. Horse racing analysis suggests that investors can exploit life cycle mechanisms, as portfolios of funds that are small and that have strong performance incentives (regardless of age) deliver superior performance with greater consistency than even past winners do