Are college education and job experience complements or substitutes? Evidence from hedge fund portfolio performance

PurposeThe purpose of the study is to investigate, synthesize and critically evaluate empirical research findings on the behavioral traits of fund managers from 1994 to 2024. The ultimate goal is to provide a unified body of literature on three broad topics: first, fund managers' demographic and professional characteristics, such as age, gender, level of education and years of industry experience; second, fund managers' social and political connections; and third, fund managers' behavioral biases that lead to irrational investment decisions.Design/methodology/approachThe relevant papers from selected journals were discovered and manually validated using the Scopus database. From 317 retrieved documents, 57 relevant articles were chosen and analyzed after the forward and backward search of the existing articles.FindingsThis paper presents a categorized summary of behavioral factors that have gained a foothold in influencing the behavior of fund managers in fund management research, with several studies demonstrating their significance leading to improved prediction and model precision, as this review indicates. In addition, the study summarized the contributions of prior empirical studies within the aforementioned three major categories and illustrated their consequences.Originality/valueThe present study contributes to the understanding of the effects of behavioral finance theories on fund managers by providing meaningful explanations of their behavioral traits based on empirical evidence and existing trends and knowledge gaps, both of which can influence the future direction of research.

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Determinants of the Nordic Hedge Fund Performance

Kolisovas

Giriūnienė

Baležentis

et al. 2022

Journal of Business Economics and Management

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Hedge funds have become an important part of the financial sector. The development of the hedge funds in the Nordic countries has been rather robust. Therefore, it is important to identify the determinants of the hedge fund performance and isolate the managerial performance, i.e., the Jensen’s alpha. To this end, this paper construct cross sectional and panel model for the Nordic hedge funds over 2005–2018. The Fung-Hsieh 8-factor model and other models are developed to identify the determinants of the Nordic hedge fund performance. The effects of crises of different nature (local to global, hedge funds to banking sector) are also tested. The results indicate that Nordic hedge funds are capable to generate positive alpha during the crisis even exceeding the alpha of the economically stable time periods.

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Are college education and job experience complements or substitutes? Evidence from hedge fund portfolio performance

Cited by 3 publications

References 44 publications

Where Do Successful Managers Come From? Evidence on Personal Characteristics, Fund Managers’ Skills, and Performance

Where Do Successful Managers Come From? Evidence on Personal Characteristics, Fund Managers’ Skills, and Performance

Behavioral traits of fund managers: a systematic literature review

Determinants of the Nordic Hedge Fund Performance

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