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Article: Bold, Young Hedge Fund Managers Post Strong Returns, But Fail More Often.
- Article from:
- Ascribe Higher Education News Service
- Article date:
- November 11, 2003
CopyrightCOPYRIGHT 2003 AScribe. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Purdue University
WEST LAFAYETTE, Ind., Nov. 11 (AScribe Newswire) -- A Purdue University finance professor's research shows that hedge funds' best results come when managers incur more risk and that this risk-taking behavior is systematically linked to a manager's level of experience. While mutual fund managers typically take on more risk as they age, experienced hedge fund managers take on less risk, which hurts the funds' returns.
"In selecting a hedge fund, an investor must weigh the higher probability of failure of a young fund against the lower predicted returns of an old fund," says Nicole Boyson, an assistant professor of finance at ...