[PDF] Top 20 Incentive Contracts and Hedge Fund Management

... an incentive option can substantially mitigate risk-taking behavior – compare our results and those of Basak, Pavlova, and Shapiro (2006) with the more extreme risk-taking in Carpenter ...the incentive ... See full document

... on hedge funds using both theoretical and empirical studies in several ...of hedge fund fee contracts affects the distribution of hedge fund returns and how using net of fee ... See full document

... Hedge fund activism mitigates agency problems that affect governance in publicly-traded companies with dispersed ...activist hedge funds are, by nature, informed traders that profit from trading on ... See full document

... the hedge fund seeding ...the hedge fund seeding business, by solving the consump- tion and portfolio-choice problem for a risk-averse manager, who launches a hedge fund via a ... See full document

... that hedge fund managers could be motivated to have skin in the game not by interest alignment but by higher expected future fee ...of hedge fund performance, indicating that the cost of a ... See full document

... that hedge funds have a weak correlation with the S&P 500 index and a near-zero correlation with the Salomon Brothers ...between hedge funds and standard assets (Mitchell and Pulvino, 2001; Brooks and ... See full document

... MSCI hedge fund index returned ...Markets hedge fund category: the boom period’s returns were spearheaded by exceptional performance in the Emerging Markets hedge fund category ... See full document

... some hedge fund managers do outperform the market and realize abnormal returns by luck, our results show that hedge fund managers possess outperformance skills during periods of positive ... See full document

... terms. Hedge funds can be successful in an unregulated market when their investors are sophisticated enough to be an effective counterpart to the hedge fund ... See full document

... of hedge funds and other non-normally distributed assets and has been widely used as a portfolio selection criterion (see ...a fund of hedge funds based on the EDHEC hedge fund style ... See full document

... As discussed above, there is an ongoing debate on the limits and costs of the regulation of mandatory disclosure in stock markets, and whether this regulation has net positive or negative effects on stock market quality ... See full document

... macro hedge fund is a category that especially appeals to institutional inves- tors due to its ...few hedge fund strategies that lost less than 5% in 2008 when most hedge fund ... See full document

... Likewise, Federal Reserve Chairman, Benjamin Bernanke, recently stated “[s]tronger regulation and supervision aimed at problems with underwriting practices and lenders’ risk management would have been a more ... See full document

... non-directional hedge funds. For directional hedge funds, timing only provides a signal of profits to be earned in the second ...non-directional hedge fund strategies, risk aversion through ... See full document

... The model of Prendergast (1993) was designed to pinpoint inefficiencies in organizations resulting from the misrepresentation of information under in- centive contracts. In this paper we have shown that these ... See full document

... As hedge fund replication based on factor models has encountered growing interest among professionals and academics, and despite the launch of numerous products (indexes and mutual funds) in the past year, ... See full document

... Alternative alpha represents risk-adjust absolute return of an alternative investing instrument regressed on alternative risk factors. Over the years, the definition is extended to the absolute re- turn generated from ... See full document

... including fund of funds (“Hedge Funds”), are unregistered private investment partnerships, funds or pools that may invest and trade in many different markets, strategies and instruments (including ... See full document

... lockup fund managers may have more skill, encouraging investors to not only accept a lockup in the first place, but also to be more patient in the face of subsequent poor short term ...the fund will again ... See full document

... use incentive contracts to attract the most talented employees to the position of CEO since achievement of high status in the Communist Party is often viewed as a marker of ability (Li et ... See full document