Chinese Hedge Fund Manager’s Professional Correlation Degree And Hedge Fund Product’s Performance

As an important representative of career experience,the work experience can influence the information acquisition and decision-making mechanism of hedge fund managers,and thus affect the performance of fund products under management.Yet,little is known about the relationship between hedge fund managers and hedge fund performance.With the rapid development of domestic hedge fund market,fund managers as a special class has increasingly caught the attention of all parties.The specific way of thinking and values implied by the difference in work experience will have an important influence on the capital market in the investment activities.This article is based on China’s "National Economic Sector Classification" of the industry’s method of division,through manual collection and matching data,we regard the correlation of the past employment experience and the employment experience in hedge fund field(professional correlation degree)as a representative of hedge fund manager’s managerial ability,and put the hedge fund products,performance as the research spot.We selected Chinese hedge fund products issued during 2010-2017 and 486 hedge fund managers involved as samples to examine the impact of hedge fund managers’ professional correlation on the performance of hedge fund products they manage.Empirical studies have found that the higher professional correlation degree is,the better hedge fund products perform.After subdividing the investment strategies,we found that this relationship also exists in stock strategy and futures strategy,while in bond strategy and macro strategy,there are no significant effects.After further dividing the market cycle,we found that the professional correlation degree of hedge fund managers has the different effect on the hedge fund performance in bull and bear markets.This paper enriches the literature on the relationship between work experience and performance,as well as hedge fund market studies.This paper also provides a new way to research career experience and hedge fund performance,from a work experience difference perspective.At the same time,the results of this paper also provide a new idea for the manager selection in hedge fund market.