This paper investigates hedge fund performance and risk. The empirical evidence indicates that hedge funds differ substantially from traditional investment vehicles such as mutual funds. The funds with watermarks significantly outperform the funds without watermarks. The average hedge fund returns are related positively to incentive fees, the size of the fund, and the lockup period. Hedge funds...

Theory suggests that long/short equity hedge funds’ returns come from long/short as well as directional exposure to the stock market and the fees related to stock loans. Empirical analysis finds persistent net exposures to the spread between small versus large cap stocks in addition to the overall market. Together, these factors account for over 80% of return variation. Additional factors are p...

financial literacy of investors reduces uncertainty on future decisions and increases predictability of investment policies in financial markets. thus, the lack of clear information on financial markets is a determining factor in the arrival of domestic and foreign capitals and their quick exit in case of crisis. the lack of transparency and basic knowledge on decisions and failure to provide r...

This paper explores U.S. mutual fund flows, finding strong evidence of seasonal reallocation across funds based on fund exposure to risk. We show that substantial money moves from U.S. equity to U.S. money market and government bond mutual funds in the fall, then back to equity funds in the spring, controlling for the influence of past performance, advertising, liquidity needs, capital gains ov...

Though there are numerous financial assets in our capital market for the investors to invest their money attainment of more return, Mutual Funds play a predominant role acting as most favorable asset increase wealth by offering schemes. Investors who eyeing on mix various one single scheme can consider investing hybrid funds. That is why we conducting study selected mutual types funds have take...

This study examines whether U.S. international equity mutual funds provide out-of-sample diversification benefits in the presence of no short selling constraints. Ignoring economic state, do not benefits. However certain states. The are concentrated when lag one-month Treasury Bill return is lower than normal.

one of the goals of financial reporting is to provide the useful information in order to facilitate the decision making. accounting information system is of high importance for the users to make specific decisions. the information should be analyzed to present the valuable information to the investors so that in this paper, the relative content and return additive with cash recovery have been a...