Sensation Seeking and Hedge Funds

ABSTRACT We show that motivated by sensation seeking, hedge fund managers who own powerful sports cars take on more investment risk but do not deliver higher returns, resulting in lower Sharpe ratios, information ratios, and alphas. Moreover, sensation‐seeking managers trade more frequently, actively, and unconventionally, and prefer lottery‐like stocks. We show further that some investors…

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Monday Is Bin Day

Monday morning is bin morning in my suburb so on Sunday evening everyone in my street collects their gaggle of variously coloured bins and parks them on the nature strip ready for collection. This morning I get and open the curtains and spy a tradies ute parked right in front of the bins thereby making…

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