High governance funds find success in low governance stocks

But the high/low governance spreads of stocks are positively related with non-hedge fund ownership

Hedge fund managers show skill in selecting stocks in corporate governance groups

In the context of hedge funds, research tends to link promotion of corporate governance with an activist investment style; activist funds improve board structures and the performance measures of an enterprise, thereby achieving better performance themselves.

Recent research shows why hedge funds may select stocks to invest in based on corporate governance standards. There are several alternative hypotheses for why hedge funds might base their stock selection process on corporate governance (see

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