Hedge fund managers with prestigious degrees aren’t necessarily smarter than their peers. But they do use their networks and the reputations of their alma maters to better structure their funds and deliver higher returns, according to new research published in the fall Journal of Alternative Investments.
The study, called “Manager Characteristics and Hedge Fund Returns, Liquidity, and Survival,” found that the educational pedigrees of hedge fund managers directly affected arcane, but crucial, characteristics like the liquidity of their portfolios.
- Julie Segal
- Institutional Investor