| Author: | Lee, Jay Hyun |
| Title: | Study on the diversification effect between two investment sectors : private equity and hedge funds |
| Advisors: | Li, Gang (AF) |
| Degree: | D.B.A. |
| Year: | 2023 |
| Subject: | Private equity Hedge funds Investments Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | iv, 84 pages : color illustrations |
| Language: | English |
| Abstract: | In this study, I examine the simultaneous management of hedge funds and private equity funds and its impact on fund performance. I find that when an investment firm managing a hedge fund simultaneously manages a private equity fund, its existing hedge fund underperforms a peer pure play hedge fund. I also find that when an investment firm managing a private equity fund simultaneously manages a hedge fund, its existing private equity fund underperforms a peer pure play private equity fund. My results are consistently robust to different portfolio-return measurements, different subsample groups, and different sample selection methods. Overall, the empirical findings support the proposition that the cost effect overweighs the spillover effect from diversification between hedge funds and private equity funds, which are the two main vehicles in the large and fast-growing alternative investment market. Many alternative asset managers have shifted from one to the other as part of their growth strategy, but my findings suggest that such diversification is not beneficial to existing fund investors, which might be counterintuitive for some practitioners and academic researchers. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 6745.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.21 MB | Adobe PDF | View/Open |
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