Research On Hedge Fund Manager Alumni Network Centrality And Fund Performance

We explore the impact of limited attention by analyzing the connections between hedge fund managers' performance and their alumni network.Hedge fund has become an important class of institutional investors in the financial market.However,the research on alumni network and Chinese hedge fund is rare.Based on the theory of network centrality,this paper constructs the alumni network of Chinese hedge fund managers,and studies the influence of managers' network location on the fund performance.The results found that,unlike the mutual fund research results,alumni network centrality of hedge fund managers is negatively correlated with the performance of stock fund products.Possible theoretical explanation is as follows: the transmission of private information in alumni circle can easily lead to information overload,and the maintenance of alumni relations also requires a lot of energy.However,the hedge fund seeks absolute returns and requires managers have innovative ideas and superior investment skills.At the same time,the gathering of information in the alumni circle can distract managers,and the redundant information can interfere their investment decisions,thus affecting fund performance.The conclusion of this paper can not only expand the empirical literatures in the alumni network of hedge fund managers at home and abroad,but also provide a new perspective for the research on the limited attention and investor behavior.At the same time,it refines the characteristics of Chinese hedge fund managers and provides some references for investors and supervision of local financial market.