Hedge fund managers differ in ability and investors want to distinguish good ones from bad. Via the design of their investment strategies, better fund managers want to ease this inference problem while worse fund managers want to complicate it. We impose only the minimal restrictions on the...

We propose an enhanced measure of optimal actively-managed mutual fund size that allows optimal fund size to vary over time. Using the new measure We find that value creation/destruction is evenly balanced between funds whose funding status is greater than (overfunded) or less than (underfunded)...

This paper describes how macroeconomic factors are used to aid in the decision-making process of allocating capital to hedge fund managers (applicable to traditional managers as well). A comparison is made between traditional portfolio construction methods and the Dynamic Asset Allocation...

I take advantage of a government announcement that non-tradable shares would become free to trade, but requiring that non-tradable shareholders pay compensation to tradable shareholders. Motivated by the finding that fund ownership negatively affects the compensation received by tradable...