Do Prime Brokers Matter in the Search for Informed Hedge Fund Managers?

The authors thank Vikas Agarwal, Henk Berkman, Hyung-Kyu Choi, Mariassunta Giannetti, Amit Goyal, Mark Grinblatt, Marcin Kacperczyk, Bing Liang, Juhani Linnainmaa, David McLean, Gianpaolo Parise, Clemens Sialm, Zheng Sun, Yuehua Tang, Melvyn Teo, and Lu Zheng as well as seminar participants at Korea University, Hanyang University, Korea Advanced Institute of Science and Technology, Seoul National University, Sungkyunkwan University, University of New South Wales, University of Sydney, Singapore Management University, National University of Singapore, University of Auckland, Auckland University of Technology, Peking University, Federal Reserve Board of Governors, University of South Carolina, Georgia Institute of Technology, Fordham University, the 11th Annual Hedge Fund and Private Equity Research Conference, the 2019 Financial Management Association (FMA) Annual Meeting, and the 2021 American Finance Association (AFA) Annual Meeting for useful comments. They are also most grateful to Victoria Ivashina (the department editor), an anonymous associate editor, and two anonymous referees for particularly helpful suggestions. Zitong Li, Stig Xeno, and Li Zou provided excellent research assistance. Any errors are the authors’ own. Send replication code-related correspondence to Ji-Woong Chung. Send all other correspondence to Byoung Uk Kang.