Do Prime Brokers Matter in the Search for Informed Hedge Fund Managers?

被引：1

作者：

Aragon, George O. ^{[1
]}

Chung, Ji-Woong ^{[2
]}

Kang, Byoung Uk ^{[3
]}

机构：

[1] Arizona State Univ, WP Carey Sch Business, Tempe, AZ 85281 USA

[2] Korea Univ, Business Sch, Seoul 02841, South Korea

[3] Hong Kong Polytech Univ, Sch Accounting & Finance, Hung Hom, Kowloon, Hong Kong, Peoples R China

来源：

MANAGEMENT SCIENCE | 2023年 / 69卷 / 08期

关键词：

hedge funds; prime brokers; search frictions; due diligence; funds of funds; MUTUAL FUNDS; SHARE RESTRICTIONS; OPERATIONAL RISK; PERFORMANCE; INFORMATION; INVESTMENT; MARKET; RETURNS; FAMILIARITY; BANKS;

D O I：

10.1287/mnsc.2022.4536

中图分类号：

C93 [管理学];

学科分类号：

12 ; 1201 ; 1202 ; 120202 ;

摘要：

Using the setting of funds of hedge funds (FoFs), we show that prime brokers (PBs) facilitate investors' search for informed hedge fund managers. We find that FoFs exhibit PB bias, a disproportionate preference for hedge funds serviced by their connected PBs. This PB bias is strongerwhen the cost of hedge fund due diligence is higher relative to capital and when the FoF's management firm generates higher prime brokerage fees. PB bias also predicts FoF performance: the highest PB-bias quartile outperforms the rest by 2.08%-2.45% per annumafter adjusting for differences in their risks.

引用

页码：4932 / 4952

页数：21

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