A typical hedge fund manager receives greater compensation when the fund has a strong absolute or relative performance. Asymmetric performance fees and fund flow-performance relationship may create incentives for risk-shifting, estimated in our study by the change in fund return volatility in...

We find effectively extracting information from the stock-related structure (SRS) can improve the predictability of stock returns. A new factor for asset pricing is constructed that captures the characteristics of stock correlation network, and a new four-factor model is proposed by adding the...