AllAboutAlpha.com says today, citing a research report, that:
"Counter-intuitively, a new study by Tom Nohel of Loyola University, Z. Jay Wang of the University of Illinois and Lu Zheng of UC Irvine actually concludes that managers of “side-by-side” hedge funds and mutual funds actually tend to deliver better mutual fund returns than those who manage only mutual funds. In other words, the possibility of nefarious trade allocations invoked by hedge fund antagonists is not only a red herring, but the exact opposite may be true."
So, should you look for mutual fund managers who also run hedge funds? You know, put it in your screens as another buy signal? Registered Rep.'s long-time mutual funds editor, Stan Luxenberg, told me quite simply: "It makes sense because fund companies tend to pick their best managers to run hedge funds."