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Hedgeové fondy a akciové trhy
[Hedge Funds and Stock Markets]

Author

Listed:
  • Petr Musílek
  • Tomáš Jeřábek
Abstract
The presented article can be divided in three main parts. In the first one the authors define the term hedge fund and discuss briefly the history of these investment entities and their current position on the global financial markets. The second part of the article investigates the impact of hedge fund activities on stock markets. The findings of this analysis which is based on descriptive statistics and distribution of the yields of a hedge fund index and two representative stock market indices and the lagged correlation between them don't indicate that hedge funds have the potential to contribute in a significant way to the instability of stock markets. The third and final part of the article deals with the regulation of hedge funds. While the regulation of these investment vehicles before the 2007-2008 global financial crisis was rather light, significant changes were adopted as part of the regulatory response and overhaul of the financial markets. The Dodd-Frank Act in the US implemented among others new registration requirements for hedge funds and their advisors and imposed wide ranging information and record-keeping requirements on their activities.

Suggested Citation

  • Petr Musílek & Tomáš Jeřábek, 2015. "Hedgeové fondy a akciové trhy [Hedge Funds and Stock Markets]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(1), pages 91-107.
    • Handle: RePEc:prg:jnlpol:v:2015:y:2015:i:1:id:990:p:91-107
    DOI: 10.18267/j.polek.990
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    References listed on IDEAS

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    1. Andrew J. Patton, 2009. "Are "Market Neutral" Hedge Funds Really Market Neutral?," The Review of Financial Studies, Society for Financial Studies, vol. 22(7), pages 2295-2330, July.
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    5. Danielsson, Jon & Taylor, Ashley & Zigrand, Jean-Pierre, 2005. "Highwaymen or heroes: Should hedge funds be regulated?: A survey," Journal of Financial Stability, Elsevier, vol. 1(4), pages 522-543, October.
    6. Fung, William & Hsieh, David A., 2000. "Performance Characteristics of Hedge Funds and Commodity Funds: Natural vs. Spurious Biases," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 35(3), pages 291-307, September.
    7. Franklin R. Edward, 1999. "Hedge Funds and the Collapse of Long-Term Capital Management," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 189-210, Spring.
    8. Carl Ackermann & Richard McEnally & David Ravenscraft, 1999. "The Performance of Hedge Funds: Risk, Return, and Incentives," Journal of Finance, American Finance Association, vol. 54(3), pages 833-874, June.
    9. Rodrigo Cifuentes & Hyun Song Shin & Gianluigi Ferrucci, 2005. "Liquidity Risk and Contagion," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 556-566, 04/05.
    10. Mr. Barry J. Eichengreen & Mr. Donald J Mathieson, 1999. "Hedge Funds: What Do We Really Know?," IMF Economic Issues 1999/002, International Monetary Fund.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    global financial crises; Institutional investors; hedge funds managers; regulation and supervision;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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