We review theory and evidence relating to herd behaviour, payoff and reputational
interactions, social learning, and informational cascades in capital markets. We offer a …

Financial market behavior and key trading strategies—illuminated by interviews with top
hedge fund experts Efficiently Inefficient describes the key trading strategies used by hedge …

This article characterizes the systematic risk exposures of hedge funds using buy-and-hold
and option-based strategies. Our results show that a large number of equity-oriented hedge …

Hedge fund strategies typically generate option-like returns. Linear-factor models using
benchmark asset indices have difficulty explaining them. Following the suggestions in, this …

The returns to hedge funds and other alternative investments are often highly serially
correlated. In this paper, we explore several sources of such serial correlation and show that …

Using a robust bootstrap procedure, we find that top hedge fund performance cannot be
explained by luck, and hedge fund performance persists at annual horizons. Moreover, we …

This Article posits that the essential role of securities regulation is to create a competitive
market for sophisticated professional investors and analysts (information traders). The Article …

Incentive fees for money managers are frequently accompanied by high‐water mark
provisions that condition the payment of the performance fee upon exceeding the previously …

We explore a new dimension of fund managers' timing ability by examining whether they
can time market liquidity through adjusting their portfolios' market exposure as aggregate …

Defining contagion as correlation over and above that expected from economic
fundamentals, we find strong evidence of worst return contagion across hedge fund styles …