managers. Flows respond quickly and strongly to performance; lagged performance has a monotonically decreasing impact on flows … times as large as direct incentives from incentive fees and returns to managers' own investment in the fund. For new funds … generated for their investors in a given year, managers receive close to another dollar in direct performance fees plus the …

We establish that the labor market helps discipline asset managers via the impact of fund liquidations on their careers …. Using hand-collected data on 1,948 professionals, we find that top managers working for funds liquidated after persistently … a model with moral hazard and adverse selection, these scarring effects can be ascribed to a drop in asset managers …

During the recent financial crisis, capital flow to hedge funds plunged, and competition among hedge fund managers … intensified. This leads to a transfer of bargaining power from hedge fund managers to investors when negotiating fund managers … managers during crisis periods. Our model predicts that when bargaining power is on the investors' side, hedge fund managers …