Hedge Fund Managers' Structual Holes And Fund Performance Co-movement

Compared with mutual fund,hedge fund is another important institutional investor in offshore financial markets.After nearly a decade of rapid development,china hedge fund has become one close rival to mutual fund in asset management abilities.Due to the principal-agent and other problems,scholars find that mutual funds cannot defeat the market in general,and most mutual fund managers do not have the obvious ability in stock selection and market timing.However,hedge funds have achieved excess returns over the average market returns,and this performance is related to hedge fund managers' personal characteristics to a certain extent.In the context of China's "relational society",hedge fund managers are often not a single individual to carry out investment and trading activities but form a coupled whole through their own social connections,which has a linkage effect on the price of investment target and even the entire financial market.By integrating the resume information of Chinese hedge fund managers,this paper constructs an alumni social network of Chinese hedge fund managers,and empirically tests the impact of the hedge fund managers' structural hole location in the social network on performance co-movement.This paper finds that the more key structural hole position Chinese hedge fund managers occupy in the social network,the higher degree of performance co-movement with other hedge fund products is.And the connection between the hedge fund managers' structural hole positions and performance co-movement exists regardless of market cycle and hedge fund product strategies.After control hedge fund managers' same school background,same major background and personal abilities,the above conclusion still exists.Based on the detailed personal information data of hedge fund managers in China,this paper empirically tests the problems that oversea literature can only give theoretical predictions.This paper not only has a contribution to the research on the hedge fund managers' personal characteristics,but also supplements the research literature of social network research methods used in the field of hedge fund.In the meantime,the tests in different market cycles provide empirical evidences for financial regulators to carry out refined supervision to avoid systemic financial risks in the Chinese market.