Performance of Technology Sector Hedge Funds in Emerging Markets

Abstract

We examine the performance of technology sector hedge funds with a special focus on emerging markets. We analyze risk-adjusted returns, alpha determinants, and various provisions of the hedge funds. We find that technology hedge funds show positive risk-adjusted returns on average and that the emerging market tech funds outperform the nonemerging market funds in general. Classified geographically, Eastern Europe funds exhibit the greatest performance and the highest ratio of funds with significant alpha. We also observe that the abnormal returns of emerging market funds are positively associated with their past performance, flow, and incentive fee, but negatively related with size.