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Article: Do prime brokers intermediate capital?
| Title | Do prime brokers intermediate capital? |
|---|---|
| Authors | |
| Issue Date | 2022 |
| Citation | Journal of Financial Intermediation, 2022, Forthcoming How to Cite? |
| Abstract | Prime brokers play an important role in intermediating arbitrage capital to hedge funds. A fund’s peer-group ranking, relative to funds that share the same prime broker, significantly affects how investors respond to its past performance. I decompose the standard performance-flow relationship into two components: (1) flows that respond to overall performance rank, and (2) flows that respond to relative (within prime broker) performance rank. Strong relative rank drives fund in-flows, while poor overall rank drives out-flows. These results suggest that prime brokers intermediate about 40% of the standard performance-flow relationship. |
| Persistent Identifier | http://hdl.handle.net/10722/322425 |
| DC Field | Value | Language |
|---|---|---|
| dc.contributor.author | Sinclair, AJ | - |
| dc.date.accessioned | 2022-11-14T08:22:53Z | - |
| dc.date.available | 2022-11-14T08:22:53Z | - |
| dc.date.issued | 2022 | - |
| dc.identifier.citation | Journal of Financial Intermediation, 2022, Forthcoming | - |
| dc.identifier.uri | http://hdl.handle.net/10722/322425 | - |
| dc.description.abstract | Prime brokers play an important role in intermediating arbitrage capital to hedge funds. A fund’s peer-group ranking, relative to funds that share the same prime broker, significantly affects how investors respond to its past performance. I decompose the standard performance-flow relationship into two components: (1) flows that respond to overall performance rank, and (2) flows that respond to relative (within prime broker) performance rank. Strong relative rank drives fund in-flows, while poor overall rank drives out-flows. These results suggest that prime brokers intermediate about 40% of the standard performance-flow relationship. | - |
| dc.language | eng | - |
| dc.relation.ispartof | Journal of Financial Intermediation | - |
| dc.title | Do prime brokers intermediate capital? | - |
| dc.type | Article | - |
| dc.identifier.email | Sinclair, AJ: andrew.sinclair@hku.hk | - |
| dc.identifier.authority | Sinclair, AJ=rp02298 | - |
| dc.identifier.doi | 10.1016/j.jfi.2022.101004 | - |
| dc.identifier.hkuros | 342233 | - |
| dc.identifier.volume | Forthcoming | - |