---
title: Hedge Fund Fees and Long-Run Outcomes
url: https://www.ml-quant.com/papers/ssrn/4451531/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4451531
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4451531
featured: 2023-06-01
citations: unknown
topic: Derivatives & Volatility
---


# Hedge Fund Fees and Long-Run Outcomes

Asset managers' performance-based fees often don't align with long-term outcomes.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4451531
- Identifier: SSRN 4451531
- Released: 2020-06-19
- First featured: Quant Letter No. 2 (2023-06-01): https://www.ml-quant.com/issues/2023-06-01/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

## Related

- [Do Hedge Funds Exploit Material Nonpublic Information? Evidence from Corporate Bankruptcies](https://www.ml-quant.com/papers/ssrn/4572759/): The article reveals that hedge funds use nonpublic information to profit from trades in securities of firms linked to a bankrupt company they serve on the unsecured creditors committee.
- [Optimal fees in hedge funds with first-loss compensation](https://www.ml-quant.com/papers/doi/10-1016-j-jbankfin-2020-105884/): The research suggests alternative fee schemes for hedge funds, arguing that traditional management and performance fees are suboptimal and that the recommended schemes reduce the fund's volatility.
- [Short-Selling Hedge Funds](https://www.ml-quant.com/papers/ssrn/4764190/): Hedge funds involved in short-selling show superior performance and unique trading patterns, often trading against retail trading trends, contributing to their exceptional performance.
- [Common Ownership and Hedge Fund Activism: An Unholy Alliance?](https://www.ml-quant.com/papers/ssrn/4835079/): The study suggests that common ownership can lead to anticompetitive outcomes, such as reduced wages and wealth transfer to shareholders.
- [Hedge Fund Portfolio Construction Using PolyModel Theory and iTransformer](https://www.ml-quant.com/papers/arxiv/2408.03320/): The article explores the use of PolyModel theory and deep learning in creating hedge fund portfolios for high returns and low risks.
- [PolyModel for Hedge Funds' Portfolio Construction Using Machine Learning](https://www.ml-quant.com/papers/arxiv/2412.11019/): The use of machine learning and PolyModel feature selection in hedge fund investments improves returns and portfolio optimization, but also increases volatility, questioning the reliability of larger funds.
