This chapter tests specific hypotheses with regard to investment preferences of LPs. First, I test if LPs have a stable preference, or bias, for specific fund types. Second, I ask if they are subject to home bias. This research is presented in the first part to the chapter, in section 5.1. The second part of this chapter focuses on a hypothesis specific for endowments: In section 5.2 I test if endowments adjust their portfolio allocation after 2001 more flexibly than other LP types.
KeywordsPension Fund Public Pension Opportunity Fund Investment Corporation Home Bias
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