We apply state-of-the-art Bayesian machine learning to test whether we can extract valuable information from analysts' recommendations of stock performance. We use a probabilistic model for independent Bayesian classifier combination that has been successfully applied in both the physical and...

In this paper, I show that prime brokers play an important role in intermediating capital to hedge funds. Specifically, I document that a fund's performance, relative to peers that share the same prime broker, is a first-order determinant of fund flows. I decompose the standard performance-flow...