RT Journal Article SR Electronic T1 The Impact of New Capital on Hedge Fund Returns JF The Journal of Investing FD Institutional Investor Journals SP 27 OP 33 DO 10.3905/joi.2015.24.4.027 VO 24 IS 4 A1 Harlan Platt A1 Licheng Cai A1 Marjorie Platt YR 2015 UL https://pm-research.com/content/24/4/27.abstract AB The decline of the hedge fund return premium over mutual funds and other investment vehicles is well known. The authors investigate whether a portion of this decline is related to the inflow of capital into hedge funds. Additionally, they inquire whether either market-neutral or directional funds may be able to avoid the lower returns that come with rising assets. They find strong support for the first hypothesis regarding the relationship between returns and assets but find no support for the market-neutral/directional hypothesis. Style drift may explain their inability to confirm the second hypothesis.TOPICS: Real assets/alternative investments/private equity, performance measurement