Pension funds’allocations to hedge funds: an empirical analysis of US and Canadian defined benefit plans
AbstractThis paper investigates the characteristics of US and Canadian pension funds that allocate assets to hedge funds. The typical pension fund that invests in hedge funds is a large sophisticated pension fund that diversi es its portfolio across numerous classes of investments, private equity in particular, uses a core-satellite organization and has access to low delegation costs for alternative assets. Moreover, we fi nd that pension funds investing in hedge funds signifi cantly obtained higher global returns.
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Bibliographic InfoPaper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2013-4.
Length: 32 pages
Date of creation: 2013
Date of revision:
pension funds; hedge funds; asset allocation; diversi cation;
Other versions of this item:
- V. Bouvatier & S. Rigot, 2013. "Pension funds' allocations to hedge funds: an empirical analysis of US and Canadian defined benefit plans," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 45(26), pages 3701-3710, September.
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
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Working Papers, Utrecht School of Economics
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