Do CFA Charterholders Make Better Hedge Fund Managers?

Yao Zheng and Eric Osmer

Chapter 80 in Handbook of Investment Analysis, Portfolio Management, and Financial Derivatives:In 4 Volumes, 2024, pp 2541-2564 from World Scientific Publishing Co. Pte. Ltd.

Abstract: In this chapter, we investigate whether hedge fund managers possessing advanced professional education, as represented by the CFA@ designation, have better managerial ability and fund performance compared to managers lacking such education. We define managerial ability in terms of market, volatility, and liquidity timing ability. In general, we find that CFA designated managers have better volatility and liquidity timing ability and earn better risk-adjusted returns than non-CFA managers. We also find that the CFA designation does not contribute to the fund flow–performance relation. The rise of high frequency and algorithmic trading may partially explain these findings.

Keywords: Financial Accounting; Financial Auditing; Mutual Funds; Hedge Funds; Asset Pricing; Options; Portfolio Analysis; Risk Management; Investment Analysis; Momentum Analysis; Behavior Analysis; Futures; Index Futures; CDCs; Financial Econometrics; Statistics; Financial Derivatives; Financial Accounting (search for similar items in EconPapers)
JEL-codes: G1 G11 G12 G3 M41 M42 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789811269943_0080 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789811269943_0080 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789811269943_0080

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().