AffiliationDepartment of Finance, Eller College of Management, University of Arizona
MetadataShow full item record
PublisherELSEVIER SCIENCE BV
CitationHedge fund politics and portfolios 2017, 75:80 Journal of Banking & Finance
JournalJournal of Banking & Finance
Rights© 2016 Elsevier B.V. All rights reserved.
Collection InformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at email@example.com.
AbstractConsistent 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.
Note36 month embargo; Available online 9 November 2016
VersionFinal accepted manuscript