Journal of Financial and Quantitative Analysis Vol. 49 No. 3 2014
The Strategic Listing Decisions of Hedge Funds
Abstract
The voluntary nature of hedge fund database reporting creates strategic listing opportunities for hedge funds. However, little is known about how managers list funds across multiple databases or whether investors are fooled by funds’ listing decisions. In this paper, we find that hedge funds strategically list their small, best-performing funds in multiple outlets immediately while preserving the option to list their other funds in additional databases later. We generally find that investors react rationally to these fund listings based on the predictability of performance. Finally, our results lead to specific guidelines on handling backfilled returns to minimize biases.
- DOI
- 10.1017/s0022109014000350
- Volume
- 49
- Issue
- 3
- Pages
- 773-796
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref