Marriages and divorces impact the performance of hedge funds

During the 7th Annual Hedge Fund Research Conference, SMU Professor of Finance Melvyn Teo, one of the authors behind the study Limited Attention, Marital Events and Hedge Funds, presented his findings on how marital events negatively impact hedge fund performance. The study showed that fund manager marriages and divorces significantly reduce investment performance, both during the six-month period surrounding the event and for up to two years after the event. The reason behind this trend, the study revealed, is the limited attention as a result of marital events.

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