Race, Discrimination, and Hedge funds
Release time：20 May 2025
May
23
|
Time & Date
|
10:30 am
-
12:00 pm,
May
23,
2025
(Friday)
|
| Topic: | Race, Discrimination, and Hedge funds |
| Time&Date: | 10:30 am -12:00 pm, May 23, 2025 (Friday) |
| Venue | Room D804, Teaching Complex D Building |
| Speaker: |
Yan Lu University of Central Florida |
| Abstract: | Minority operated hedge funds attract lower start-up capital and investor flows. Yet they deliver higher alphas, Sharpe ratios, and information ratios relative to non- minority operated hedge funds. Moreover, minority managers are more likely to attend prestigious colleges, receive specialized education, eschew downside risk, and exhibit trustworthiness. Racial homophily drives investors’ preference for non-minority funds. An event study of minority manager fund transitions, instrumental variable regressions that exploit childhood racial imprinting, and an analysis of minority managers with non-White sounding first names address endogenity. Our results reveal that racial minorities face significant taste-based discrimination in asset management. |
| Biography: | Dr. Lu is an Associate Professor of Finance in the College of Business at the University of Central Florida. She received her Ph.D. degree from the University of Florida and her undergraduate degree from Tongji University. She also obtained her MBA and Master of Science in Real Estate degree from the University of Florida. She has been a member of the UCF faculty since August 2015. Dr. Lu’s research interests are in the areas of alternative investments and behavioral finance. Her research has been published in the Journal of Finance, Management Science and the Journal of Financial Economics. She was invited to present at major conferences such as European Finance Association annual meetings and American Finance Association annual meetings. |
