Are hedge funds registered in Delaware different?

B-Tier
Journal: Journal of Corporate Finance
Year: 2015
Volume: 35
Issue: C
Pages: 232-246

Authors (3)

Cumming, Douglas (not in RePEc) Dai, Na (not in RePEc) Johan, Sofia (Universiteit van Tilburg)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Delaware hedge funds exhibit significant differences in contractual structure in terms of higher management and incentive fees. Delaware funds are more likely to use high watermark provisions and less likely to invest their personal capital. Both the redemption notice periods and lock up periods are significantly longer for Delaware hedge funds. While Delaware hedge funds do not outperform or underperform funds registered elsewhere, fund flows are more sensitive to Delaware funds' prior performance and Delaware funds are more likely to be liquidated due to poor performance. Further, Delaware funds are more likely to increase risk after poor absolute performance.

Technical Details

RePEc Handle
repec:eee:corfin:v:35:y:2015:i:c:p:232-246
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25