Abstract
The objective of this research is to verify whether the age, fundraising, volatility and situation of the fund influence the alpha generation of Brazilian hedge funds in the period from 2010 to 2019. A quantitative research was carried out using descriptive and inferential statistical techniques in SPSS v.24. The results reveal the following divergences with the literature: a) long-lived funds present similar performance or better than short-lived funds; b) funds with positive alpha have lower volatility; c) funds with positive fundraising have higher volatility; d) funds over the age of four have a more aggressive profile. 
Highlights
At the end of the 1980s, demand for hedge funds increased sharply in the United States, due to its prominence for its greater capacity to generate returns
Because the United States is the pioneer and the largest holder of the hedge funds industry, both in volume and in number of funds, most studies are from American authors, using a sample of funds domiciled in the United States
The performance of the portfolios was significantly reduced after the introduction of diversification requirements, as well as additional restrictions related to the size of the investment, liquidity, transaction cost, legal reviews, among other operational considerations that could reduce the alpha
Summary
At the end of the 1980s, demand for hedge funds increased sharply in the United States, due to its prominence for its greater capacity to generate returns. Despite the increase in interest on the subject, there is a limited understanding of what drives the life cycle of hedge funds. The paper analyzes whether fund flows, fund performance and age affect the liquidation probability or merged probability. Getmansky (2012) states that past fund flow, past performance and current performance negatively affect the liquidation probability; age positively affects the liquidation probability. Berk and Green (2004), Vayanos (2004), Fung et al (2008) and Gao et al (2012) state that lower fund flows due to poor performance can lead to fund liquidation. According to Getmansky (2012), hedge funds compete for limited opportunities and capital, increasing the fund's probability of liquidation. As the investor looks for better returns by category, the fund's probability of liquidation increases due to competition. Analyzing the positioning of the category, it is possible to understand the fund's life cycle
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