Did the Dodd-Frank Act Impact Hedge Fund Performance
Wulf A. Kaal, Barbara Luppi, Sandra Paterlini · 2014
Title IV of the Dodd-Frank Act introduced the most significant regulatory change in the history of the hedge fund industry. Contrary to the hedge fund industry’s claims that increased supervision and disclosure would affect their profitability, we find statistical evidence of a positive effect of the requirements introduced by the Dodd- Frank Act on hedge fund performance. The registration requirement for hedge fund advisers under the Dodd-Frank Act creates a discontinuity in hedge fund returns at the registration effective date, March 30, 2012. Strategic actions by fund advisers lead to a strong increase in the discontinuity around the AUM registration threshold.
Cite: Wulf A. Kaal, Barbara Luppi, Sandra Paterlini, Did the Dodd-Frank Act Impact Hedge Fund Performance (2014). SSRN: https://ssrn.com/abstract=2389416. https://doi.org/10.2139/SSRN.2389416
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