Overview Of Nonlinear Kinetic Instabilities

The saturation of shear Alfven-like waves by alpha particles is presented from the general viewpoint of determining the saturation mechanisms of basic waves in a plasma destabilized by a perturbing source of free energy. The formalism is reviewed and then followed by analyses of isolated mode saturation far from and close to marginal stability. The effect of multiple waves that are isolated or are overlapping is then discussed. The presentation is concluded with a discussion of a non-conventional quasilinear theory that covers both extreme cases as well as the intermediate regime between the extremes.Physic

Pay for Performance from Future Fund Flows: The Case of Private Equity

Lifetime incomes of private equity general partners are affected by their current funds’ performance through both carried interest profit sharing provisions, and also by the effect of the current fund’s performance on general partners’ abilities to raise capital for future funds. We present a learning-based framework for estimating the market-based pay for performance arising from future fundraising. For the typical first-time private equity fund, we estimate that implicit pay for performance from expected future fundraising is approximately the same order of magnitude as the explicit pay for performance general partners receive from carried interest in their current fund, implying that the performance-sensitive component of general partner revenue is about twice as large as commonly discussed. Consistent with the learning framework, we find that implicit pay for performance is stronger when managerial abilities are more scalable and weaker when current performance contains less new information about ability. Specifically, implicit pay for performance is stronger for buyout funds compared to venture capital funds, and declines in the sequence of a partnership’s funds. Our framework can be adapted to estimate implicit pay for performance in other asset management settings in which future fund flows and compensation depend on current performance.Private equity; Venture capital; Fundraising; Compensation; Incentives

Sequential Bahadur Efficiency

The notion of Bahadur efficiency for test statistics is extended to the sequential case and illustrated in the specific context of testing one-sided hypotheses about a normal mean. An analog of Bahadur\u27s theorem on the asymptotic optimality of the likelihood ratio statistic is seen to hold in the normal case. Some possible definitions of attained level for a sequential experiment are considered

Journal of Financial Economics

We propose a new method of testing asset pricing models that relies on quantities rather than just prices or returns. We use the capital flows into and out of mutual funds to infer which risk model investors use. We derive a simple test statistic that allows us to infer, from a set of candidate models, the risk model that is closest to the model that investors use in making their capital allocation decisions. Using our method, we assess the performance of the most commonly used asset pricing models in the literature

Measuring Skill in the Mutual Fund Industry

Using the value that a mutual fund extracts from capital markets as the measure of skill, we find that the average mutual fund has used this skill to generate about $3.2 million per year. Large cross-sectional differences in skill persist for as long as ten years. Investors recognize this skill and reward it by investing more capital with better funds. Better funds earn higher aggregate fees, and a strong positive correlation exists between current compensation and future performance. The cross-sectional distribution of managerial skill is predominantly reflected in the cross-sectional distribution of fund size, not gross alpha

The Role of Relapse Prevention and Goal Setting in Training Transfer Enhancement

This article reviews the effect of two post-training transfer interventions (relapse prevention [RP] and goal setting [GS]) on trainees’ ability to apply skills gained in a training context to the workplace. Through a review of post-training transfer interventions literature, the article identifies a number of key issues that remain unresolved or underexplored, for example, the inconsistent results on the impact of RP on transfer of training, the lack of agreement on which GS types are more efficient to improve transfer performance, the lack of clarity about the distinction between RP and GS, and the underlying process through which these two post-training transfer interventions influence transfer of training. We offer some recommendations to overcome these problems and also provide guidance for future research on transfer of training

Nonlinear dispersion of stationary waves in collisionless plasmas

A nonlinear dispersion of a general stationary wave in collisionless plasma is obtained in a non-differential form from a single-particle oscillation-center Hamiltonian. For electrostatic oscillations in nonmagnetized plasma, considered as a paradigmatic example, the linear dielectric function is generalized, and the trapped particle contribution to the wave frequency shift $\Delta\omega$ is found analytically as a function of the wave amplitude $a$. Smooth distributions yield $\Delta\omega\sim a^{1/2}$, as usual. However, beam-like distributions of trapped electrons result in different power laws, or even a logarithmic nonlinearity, which are derived as asymptotic limits of the same dispersion relation