The effects of management and provision accounts on hedge fund returns - Part II: The Loss Carry Forward scheme

Serge Darolles, Christian Gourieroux

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

In addition to active portfolio management, hedge funds are characterized by the allocation of portfolio performance between the external investors and the management firm accounts. This allocation can take different forms, such as the Loss Carry Forward scheme, and some of them can be coupled with performance smoothing techniques. This paper shows that this additional smoothing component might explain some empirical facts observed on the distribution and the dynamics of hedge fund returns.

Original languageEnglish
Title of host publicationModeling Dependence in Econometrics
PublisherSpringer Verlag
Pages47-61
Number of pages15
ISBN (Print)9783319033945
DOIs
Publication statusPublished - 1 Jan 2014
Externally publishedYes
Event7th International Conference of the Thailand Econometric Society, TES 2014 - Chiang Mai, Thailand
Duration: 8 Jan 201410 Jan 2014

Publication series

NameAdvances in Intelligent Systems and Computing
Volume251
ISSN (Print)2194-5357

Conference

Conference7th International Conference of the Thailand Econometric Society, TES 2014
Country/TerritoryThailand
CityChiang Mai
Period8/01/1410/01/14

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