Do corporate site visits impact hedge fund performance?

Xin Hong, Zhuang Zhuang, Di Kang and Zhibin Wang

Pacific-Basin Finance Journal, 2019, vol. 56, issue C, 113-128

Abstract: Nearly one in six hedge funds conducted corporate site visits from 2012 to 2017. Using comprehensive hedge fund site visit data, this paper is one of the first to empirically examine how corporate site visits affect fund performance. We find that hedge funds with more corporate site visits have better performance. The relation is stronger when a hedge fund manager visits a neglected firm or asks more questions during the visit, suggesting that hedge funds may be able to gain information advantage through site visits. Site visits benefit hedge funds more when a hedge fund manager conducts a site visit with a mutual fund manager. Further, the margin trading of the visited company's stock increases following a hedge fund site visit.

Keywords: Hedge funds; Corporate site visit; Information advantage (search for similar items in EconPapers)
JEL-codes: G12 G23 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (50)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:56:y:2019:i:c:p:113-128

DOI: 10.1016/j.pacfin.2019.06.002

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