Date of Award

Spring 4-8-2016

Degree Type


Degree Name

Doctor of Philosophy (PhD)



First Advisor

Vikas Agarwal

Second Advisor

Conrad Ciccotello

Third Advisor

Gerald Gay

Fourth Advisor

Harley "Chip" Ryan


I examine the impact of hedge fund managers selling ownership stakes in their firms to outside owners. Funds with outside owners do not subsequently outperform a matched sample of funds but do attract higher flows, suggesting that managers sell stakes to obtain strategic growth partners. The flow impact is greater for i) funds with lower prior flows or performance, ii) smaller funds, and iii) funds with more reputable outside owners. Outsiders also monitor their investments as funds with outside owners reduce their returns management. The reduction in return management is stronger after the 2008 financial crisis when institutions’ reputations are more tarnished. Combined, the results indicate that outside ownership benefits managers, outsiders, and fund investors.