Growing the asset management franchise: Evidence from hedge fund firms

Growing the asset management franchise: Evidence from hedge fund firms

We investigate the growth strategies of hedge fund firms. We find that firms with successful first funds are able to launch follow-on funds that charge higher performance fees, set more onerous redemption terms, and attract greater inflows. While first funds outperform follow-on funds, the superior...

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Main Authors: FUNG, William, HSIEH, David, NAIK, Narayan Y., TEO, Melvyn
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2013
Subjects:
Hedge funds
Franchise
Agency Problems
Multiple-product
Finance
Finance and Financial Management
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/5327
https://ink.library.smu.edu.sg/context/lkcsb_research/article/6326/viewcontent/hedgefund_flagshipXXV.pdf
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Institution: Singapore Management University
Language: English
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spelling sg-smu-ink.lkcsb_research-63262018-10-02T03:06:06Z Growing the asset management franchise: Evidence from hedge fund firms FUNG, William HSIEH, David NAIK, Narayan Y. TEO, Melvyn We investigate the growth strategies of hedge fund firms. We find that firms with successful first funds are able to launch follow-on funds that charge higher performance fees, set more onerous redemption terms, and attract greater inflows. While first funds outperform follow-on funds, the superior performance of the former attenuates following the launch of the second fund. Multiple-product firms underperform single-product firms, but harvest greater fee revenues. Consequently, the multiple-product firm has become the dominant business model in the hedge fund industry. 2013-08-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/5327 https://ink.library.smu.edu.sg/context/lkcsb_research/article/6326/viewcontent/hedgefund_flagshipXXV.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Hedge funds Franchise Agency Problems Multiple-product Finance Finance and Financial Management
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Hedge funds
Franchise
Agency Problems
Multiple-product
Finance
Finance and Financial Management
spellingShingle Hedge funds
Franchise
Agency Problems
Multiple-product
Finance
Finance and Financial Management
FUNG, William
HSIEH, David
NAIK, Narayan Y.
TEO, Melvyn
Growing the asset management franchise: Evidence from hedge fund firms
description We investigate the growth strategies of hedge fund firms. We find that firms with successful first funds are able to launch follow-on funds that charge higher performance fees, set more onerous redemption terms, and attract greater inflows. While first funds outperform follow-on funds, the superior performance of the former attenuates following the launch of the second fund. Multiple-product firms underperform single-product firms, but harvest greater fee revenues. Consequently, the multiple-product firm has become the dominant business model in the hedge fund industry.
format text
author FUNG, William
HSIEH, David
NAIK, Narayan Y.
TEO, Melvyn
author_facet FUNG, William
HSIEH, David
NAIK, Narayan Y.
TEO, Melvyn
author_sort FUNG, William
title Growing the asset management franchise: Evidence from hedge fund firms
title_short Growing the asset management franchise: Evidence from hedge fund firms
title_full Growing the asset management franchise: Evidence from hedge fund firms
title_fullStr Growing the asset management franchise: Evidence from hedge fund firms
title_full_unstemmed Growing the asset management franchise: Evidence from hedge fund firms
title_sort growing the asset management franchise: evidence from hedge fund firms
publisher Institutional Knowledge at Singapore Management University
publishDate 2013
url https://ink.library.smu.edu.sg/lkcsb_research/5327
https://ink.library.smu.edu.sg/context/lkcsb_research/article/6326/viewcontent/hedgefund_flagshipXXV.pdf
_version_ 1770573788383019008

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