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Stephen Brown (NYU Stern) presents: Life in the Fast Lane - hedge fund ris...
Fri 24 February 2017, 12:00 PM – 1:30 PM NZDT
Join us for a working luncheon with Stephen Brown (NYU Stern School of Business and Monash University) about Life in the Fast Lane - Speeding tickets, regulatory action and hedge fund risk taking behavior.
Working lunch and refreshments will be available
Hedge fund managers are widely perceived as risk takers. We examine whether risk taking behavior as documented in the record of manager speeding tickets has any relation to the operational risk of hedge funds and the financial risk of hedge fund strategies. We find that two or more speeding tickets issued to a manager imply significantly higher operational and financial risk of their funds. However, once the consequences of risk taking behavior are made known through legal and regulatory problems disclosed on Form ADV, there is evidence that financial risk actually declines. This reduction in risk is largely as the result of a decrease in long only leverage, which suggests that the risk reduction may be in response to the reluctance of prime brokers and others to supply leverage once operational risk issues become apparent at the fund. In addition, we find that this reduction in financial risk reduces the opportunity for the fund to outperform.
Dress Code: Business Attire
event sponsors: CFA Society NZ and Massey University Business School
- CFA Society Members / Massey University / INFINZ $30
- AFA / Non Members $40
- Corporate table of 8 seats $200
When registering, we do not require your IRD number (Eventbrite makes this field mandatory). Please enter 0's on the registration form to proceed.
Venue: The Northern Club
CPD: 1.0 CE Credit
Please advise if you have any dietary restrictions.