Fund Manager's Impact On Hedge Fund's Performance In China

Private Fund is the corresponding concept to Public Fund, according to the different ways of collecting money. Based upon the different investing targets, private funds are divided into private securities investment fund and private equity investment fund. The Private Fund in this paper is the private securities investment fund, which is non-publicly issued to particular investors. Private equity fund in China now is currenting the stage of rapid development. As the fund managers'background are widely discrepant, which makes significant difference of performance, fund manager is critical in choosing private funds.This paper analyzed the various factors that influence security investment fund's performance, and focus on the fund manager's impact in China. I firstly analyze the status of Trust-based private equity funds and fund managers, then find out the characters, such as education background, working experience of fund manager which can affect portfolio's performance. Through the OLS regression as well as the literature and date research, I come to two conclusions:the first is those fund managers with Science background can do better in investment, the second is professional manager perform better than those come from grass-roots. Finally, I discuss defects of this paper, and analysis the future of hedge fund in China.