The snobbery that exists on the hedge fund side of the mutual fund (mutual fund news) vs. hedge fund (hedge fund news) debate has often manifested itself in the idea that mutual fund managers can't run a hedge fund because they have no idea how to make money in a down market. Well, a new study has found that not only can a mutual fund manager work the same magic with a hedge fund, but that doing both can lead to better performance.

AllAboutAlpha notes a study by Tom Nohel of Loyola University, Z. Jay Wang of the University of Illinois and Lu Zheng of the University of California, Irvine, that has concluded "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." Why would running a hedge fund on the side be good for returns? Perhaps the opportunity to also manage a hedge fund attracts better talent.   

For more:
- here's the article

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