Onshore and Offshore Hedge Funds: Are They Twins?

• 成果类型: Article
• 署名作者: Aragon, George; Liang, Bing; Park, Hyuna
• 署名单位: Arizona State University; Arizona State University-Tempe; University of Massachusetts System; University of Massachusetts Amherst; Minnesota State Colleges & Universities; Minnesota State University Mankato
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2013.1729
• 发表日期: 2014
• 页码: 74-91
• 关键词: offshore hedge funds; lockup provision; liquidity risk; master-feeder structure

摘要

Contrary to offshore hedge funds, U.S.-domiciled (onshore) funds are subject to strict marketing prohibitions, accredited investor requirements, a limited number of investors, and taxable accounts. We exploit these differences to test predictions about organizational design, investment strategy, capital flows, and fund performance. We find that onshore funds are associated with greater share restrictions, more liquid assets, and a reduced sensitivity of capital flows to superior past performance. We also find some evidence that onshore funds outperform offshore funds, depending on the sample period. The results suggest that a fund's investment and financial policies reflect differences in investor clienteles and the regulatory environment.