This paper examines herding among hedge fund styles and uncovers new intuitions about the industry. By examining hedge fund style index returns using four techniques, we show that perceptions of herding may differ based on the choice of analytical method. Our analysis with independent component...

In the 2000's large investment banks and hedge funds became a major source of capital for start up firms and private equity deals. However, the standard hedge fund structure lead to the largest bankruptcy rate in investment banks since the great depression. The hedge funds that were involved in...

In the 2000's large hedge funds became major investors in illiquid assets. When returns were steady, inflows and outflows of capital balanced each other out. But, in 2008 and 2009 investors removed capital at rapid rates despite depressed prices. In this paper we develop a Bayesian model where...