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Asset Management and Investment Banking
Abstract
We find evidence that conflicts of interest are pervasive in the asset management business owned by investment banks. Using data from 1990 to 2008, we compare the alphas of mutual funds, hedge funds and institutional funds operated by investment banks and non-bank conglomerates. We find that while there is no difference in performance by fund type but being owned by an investment bank reduces alphas by 46 basis points per year in our baseline model. Making lead loans increases alphas but the dispersion
Date Issued
2013-02-09Subject
Cornell; investment bank; institutional funds; hedge funds; mutual funds; performance evaluation
Related Version
A later version of this article is available elsewhere in eCommons.
Related To:
https://hdl.handle.net/1813/72019Rights
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Type
article