English, Article, Journal or magazine article edition: The Hedge Fund Game: Incentives, Excess Returns, and Piggy-Backing Dean P. Foster; H. Peyton Young

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/21037
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Hedge Fund Game: Incentives, Excess Returns, and Piggy-Backing
Author
  • Dean P. Foster
  • H. Peyton Young
Physical Description
  • preprint
Notes
  • We show that it is very difficult to structure incentive schemes that distinguish between unskilled hedge fund managers, who cannot generate excess returns, and highly skilled managers who can consistently deliver such returns. Under any incentive scheme that does not levy penalties for underperformance, managers with no investment skill can "game" the system to earn expected fees that are at least as high, relative to expected gross returns, as they are for the most skilled managers. Various ways of eliminating this "piggy-back problem" are examined, but the nature of the derivatives market means that it cannot be eliminated entirely.
  • Incentive Contract, Excess Return, Tail Event
  • RePEc:oxf:wpaper:378
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment