It turns out you don’t actually have to be a good hedge fund manager to attract assets.
According to a new study published earlier this week compiled by Juha Joenväärä of the University of Oulu and Cristian Ioan Tiu from the University of Buffalo, hedge funds whose names exhibit gravitas have the potential to attract up to more than a quarter million dollars more in annual flows that their uninspiringly named peers.
What’s more, even though hedge funds with the most powerful names tend to attract more assets than others, the study shows such funds generally exhibit lower returns, alphas, Sharpe ratios and manipulation-proof performance measures, higher volatilities and maximum drawdowns as well as higher probabilities...
