Hedge fund star managers shine less bright to investors

Hedge funds that hook investors on the basis of a well-known ‘star’ portfolio manager may attract capital in the short term, but the shine can wear off, finds a new study by Ernst & Young. An overwhelming 80% of Asian hedge funds believe investor loyalty lies mainly with the firm’s founding principal, a sentiment matched by only 35% of counterparts in Europe and 48% in the US, according to the Coming of Age global hedge fund survey. By comparison, only 41% of investors say the…