Hedge Fund Awards: Do Investors and Managers Care, and Should They?

Seongkyu Park, Byoung Uk Kang, Hyung Kyu Choi

Research output: Unpublished conference presentation (presented paper, abstract, poster)Conference presentation (not published in journal/proceeding/book)Academic researchpeer-review

Abstract

We investigate the impact of hedge fund awards on hedge fund flows, performance, and risk-takingbehavior.Weshow that award winners experience a significant increase in fund flows, but find no evidence that they deliver superior alpha subsequently. Our results are robust when we incorporate difference-in-difference methodology. Meanwhile,fund managers with a feasible chance of winning the award increase fundrisk, suggestingtournament behavior among the top performing managers.We also find increase in investor attention following award announcements by analyzing Google search volume and SEC’s EDGAR log file data. These results expand our understanding of the behaviorof presumably sophisticated investors in the hedge fund industry and managerial incentives that arise in response.
Original languageEnglish
Publication statusNot published / presented only - 21 Oct 2020
EventFinancial Management Association Annual Meeting 2020 - Online
Duration: 20 Oct 202023 Oct 2020
http://www.fmaconferences.org/NY2020/VirtualProgram.htm

Conference

ConferenceFinancial Management Association Annual Meeting 2020
Abbreviated titleFMA2020
Period20/10/2023/10/20
Internet address

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