This paper compares the performance and capital flow to emerging market hedge funds located in the US with those of the funds located in other countries. I find that the US funds on average provided neither a positive risk-adjusted return nor a liquidity premium to compensate for the stronger...

Cash flows between investors and funds are both cause and effect in a complex web of economic decisions. Among the issues at stake are the prospects and fees of the funds, the efforts and risk choices by the funds’ managers, the pricing and comovement of the assets they trade, the stability of...