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Dec 15, 2017
ICEF/FES Job Market Seminar by Olga Obizhava (LSE)
On Friday, December 15 at 4.00 pm, room 3211 (Shabolovka str. 26) ICEF and FES held the Job Market Seminar.
Speaker: Olga Obizhava (LSE)
Theme: "Fundraising in the Hedge Fund Industry"


Abstract: This paper studies fundraising process in the hedge fund industry. Us- ing SEC form D filings of hedge funds, I document that funds that are sold to investors by intermediary brokers underperform funds that are offered to investors directly by 2% (1.6%) per year on a risk-adjusted basis before (after) fees. Funds that are sold to investors directly on average have larger investment size and larger minimum investment size and charge higher performance fees comparing to funds offered to investors by brokers. These results are consistent with a stylized model of fundraising where hedge funds choose fees and capital raising channels and investors with heterogenous due-diligence costs allocate capital across hedge funds.

 


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