Hedge Fund Mergers

Nusret Cakici and Sris Chatterjee

Volume 5, Number 2, Second Quarter 2007

This paper examines the characteristics of merged hedge-funds. The data indicate that merged hedge-funds are larger funds that have underperformed over a two-year period prior to merger and have suffered from significantly lower money-flow prior to merger. Merged hedge-funds are also older funds. The fee structure of merged funds is similar to other hedge-funds. The paper compares these findings with recent research findings on mutual fund mergers.