Hedge fund politics and portfolios

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• 作者：Luke DeVault^a ; ^{ldevaul@clemson.edu} ; Richard Sias^b ; ^{sias@email.arizona.edu}
• 关键词：Psychology ; Political orientation ; Hedge funds ; Portfolio decisions
• 刊名：Journal of Banking & Finance
• 出版年：2017
• 出版时间：February 2017
• 年：2017
• 卷：75
• 期：Complete
• 页码：80-97
• 全文大小：771 K
• 卷排序：75

文摘

Consistent with the well-documented relation between political orientation and psychological traits, hedge funds’ political orientations are related to their portfolio decisions. Relative to politically conservative hedge funds, politically liberal hedge funds exhibit a preference for smaller stocks, less mature companies, volatile stocks, unprofitable companies, non-dividend paying companies, and lottery-type securities. Politically liberal hedge funds are also more likely to enter new positions or fully exit existing positions, and make larger adjustments to their U.S. equity market exposure. Our results suggest that psychological characteristics can influence the portfolio decisions of even those at the very top of the financial sophistication ladder.