What Hedge Funds Teach About Investment Management
Better that fund companies hire on merit than familiarity.
Three professors recently asked a question: Do hedge funds that possess diverse management teams outperform those without? In “Diverse Hedge Funds,” by Yan Lu, Narayan Naik, and Melvyn Teo, the authors found the answer to be an unqualified Yes. Initially, that result surprised me, but upon reflection it makes perfect sense, although not solely for the reasons provided by the paper.