BURASCHI, ANDREA; KOSOWSKI, ROBERT; SRITRAKUL, WORRAWAT - In: Journal of Finance 69 (2014) 6, pp. 2819-2870
type="main" <title type="main">ABSTRACT</title> <p>Hedge fund managers are subject to several nonlinear incentives: performance fee options (call); equity investors' redemption options (put); and prime broker contracts allowing for forced deleverage (put). The interaction of these option-like incentives affects optimal...</p>