Growing the asset management franchise: Evidence from hedge fund firms

• 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
• Institution: Singapore Management University

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...