Exploring uncharted territories of the hedge fund Industry: Empirical characteristics of mega hedge fund firms


Journal Article

This paper investigates mega hedge fund management companies that collectively manage over 50% of the industry's assets, incorporating previously unavailable data from those that do not report to commercial databases. We find similarities among mega firms that report performance to commercial databases compared with those that do not. We show that the largest divergences between the performance of reporting and nonreporting mega firms 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. © 2013 Elsevier B.V.

Full Text

Duke Authors

Cited Authors

  • Edelman, D; Fung, W; Hsieh, DA

Published Date

  • September 1, 2013

Published In

Volume / Issue

  • 109 / 3

Start / End Page

  • 734 - 758

International Standard Serial Number (ISSN)

  • 0304-405X

Digital Object Identifier (DOI)

  • 10.1016/j.jfineco.2013.04.003

Citation Source

  • Scopus