Hedge fund performance and managerial social capital

Rosmah Mat Isa, Rashid Ameer*

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

Purpose – This article seeks to explain and empirically test the relationship between managerial social capital and hedge fund performance. Design/methodology/approach – This article uses a capital asset pricing model (CAPM)-style five factor model to estimate excess returns for the top 25 hedge funds. Findings – The results show that hedge funds managers with more affiliation diversity have higher annualised rate of return. This result seems to suggest managers with more social networks and affiliation have access to market niche of wealthy investors to increase their investor base. Hedge fund managers' prior skills sets and repertoire of knowledge significantly influence their risk taking attitude. Research limitations/implications – The sample consists of the top 25 hedge funds. Originality/value – The article discusses the role and implications of managerial social capital in hedge fund marketing and performance.

Original languageEnglish
Pages (from-to)246-259
Number of pages14
JournalJournal of Risk Finance
Volume8
Issue number3
DOIs
Publication statusPublished - 29 May 2007

Fingerprint

Hedge funds
Hedge fund performance
Social capital
Fund managers
Investors
Market niche
Rate of return
Social networks
Managers
Capital asset pricing model
Excess returns
Risk taking
Five-factor model
Marketing
Design methodology

Keywords

  • Alternate investment markets
  • Fund management
  • Hedging
  • Human capital
  • Social capital

Cite this

Mat Isa, R., & Ameer, R. (2007). Hedge fund performance and managerial social capital. Journal of Risk Finance, 8(3), 246-259. https://doi.org/10.1108/15265940710750495
Mat Isa, Rosmah ; Ameer, Rashid. / Hedge fund performance and managerial social capital. In: Journal of Risk Finance. 2007 ; Vol. 8, No. 3. pp. 246-259.
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Mat Isa, R & Ameer, R 2007, 'Hedge fund performance and managerial social capital', Journal of Risk Finance, vol. 8, no. 3, pp. 246-259. https://doi.org/10.1108/15265940710750495

Hedge fund performance and managerial social capital. / Mat Isa, Rosmah; Ameer, Rashid.

In: Journal of Risk Finance, Vol. 8, No. 3, 29.05.2007, p. 246-259.

Research output: Contribution to journalArticle

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Mat Isa R, Ameer R. Hedge fund performance and managerial social capital. Journal of Risk Finance. 2007 May 29;8(3):246-259. https://doi.org/10.1108/15265940710750495