Diverse Hedge Funds

• 成果类型: Article
• 署名作者: Lu, Yan; Naik, Narayan Y.; Teo, Melvyn
• 署名单位: State University System of Florida; University of Central Florida; University of London; London Business School; Singapore Management University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad064
• 发表日期: 2024
• 页码: 639
• 关键词: capacity constraints; GENDER DIVERSITY; performance; RISK; patterns; returns; persistence; Managers; heteroskedasticity; friendship

摘要

Hedge fund teams with heterogeneous educational backgrounds, academic specializations, work experiences, genders, and races, outperform homogeneous teams after adjusting for risk and fund characteristics. An event study of manager team transitions, instrumental variable regressions, and an analysis of managers who simultaneously operate solo- and team-managed funds address endogeneity concerns. Diverse teams deliver superior returns by arbitraging more stock anomalies, avoiding behavioral biases, and minimizing downside risks. Moreover, diversity allows hedge funds to circumvent capacity constraints and generate persistent performance. Our results suggest that diversity adds value in asset management.Authors have furnished an , which is available on the Oxford University Press Web site next to the link to the final published paper online