Research On The Shareholding Preference And Performance Of Mutual Funds And Hedge Fund

Since 2004,China has vigorously cultivated qualified institutional investors.At present,institutional investors have become the backbone of Chinese stock market investors.There are large differences in the investment styles of different types of institutional investors.Mutual funds and hedge funds,as typical institutional investors,have been receiving widespread market attention for their shareholding preferences.Unfortunately,according to the results of current academic research,research on China 's hedge fund shareholding preferences is lacking,and no authoritative scholar has conducted relevant research on the differences in mutual fund and hedge fund shareholding preferences.Therefore,based on the theoretical differences between mutual funds and hedge funds,this paper studies the shareholding preferences of mutual funds and hedge funds in China from 2010 to 2017.The results of the study found that mutual funds and hedge funds have significantly different shareholding preferences.Hedge funds prefer to hold corporate stocks that are small in scale,weak in profitability,low in transparency of information,high in investment risk,and concentrated in equity.Mutual funds are more inclined to hold stocks of companies with larger size,strong profitability,higher information transparency,lower investment risks,and diversified equity.The reasons for the differences in preferences between the two are mainly related to the operating methods and regulatory requirements of mutual funds and hedge funds.In addition,this article further studies the impact of mutual fund and hedge fund positions on their product performance.The study found that,for all hedge fund products,its performance is affected by the profitability of listed companies,the degree of information disclosure,company size,stock liquidity,and stock volatility.When companies holding hedge funds have stronger profitability,higher levels of information disclosure,larger companies,better stock liquidity,and greater stock volatility,the better hedge funds performed.For mutual funds,when they hold stocks of smaller companies,the performance of them is better.The research conclusions of this article can help investors to more clearly understand the differences in positions of mutual funds and hedge funds,and it can also be of inspiration to scholars who study mutual funds and hedge funds.