Hedge Funds and Analyst Conflict of Interest

• Main Authors: CHUNG, Sung Gon, TEO, Melvyn
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: analysts; hedge funds; agency; conflicts of interests; Accounting; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/soa_research/996; https://ink.library.smu.edu.sg/context/soa_research/article/1995/viewcontent/HedgeFundsAnalystConflict_2012.pdf
• Institution: Singapore Management University

Are sell-side analysts reluctant to go against the investment views of their hedge fund clients? We show that analysts tend to upgrade stocks recently bought and downgrade stocks recently sold by hedge funds. Relative to other buy and strong buy recommendations, similar recommendations on stocks pre...