We explore the value of diversity for hedge funds. We show that fund management teams with heterogeneous education backgrounds, work experiences, nationalities, genders, and races, outperform homogeneous teams by 5.03% to 8.10% per annum after adjusting for risk. An event study of...

We investigate the growth strategies of hedge fund firms. We find that firms with successful first funds are able to launch follow-on funds that charge higher performance fees, set more onerous redemption terms, and attract greater inflows. Motivated by the aforementioned spillover effects,...