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COVID‐19 and hedge fund equity ownership

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  • Laleh Samarbakhsh
  • Amanjot Singh

Abstract

This study investigates hedge funds equity ownership in light of the COVID‐19 pandemic. Using the merged dataset of Lipper TASS hedge funds and the corresponding 13F filings, we find that with the start of the pandemic, hedge funds increased their equity ownership toward firms with less financial constraints, such as larger firms, firms with lower leverage, and more profitability. Moreover, hedge funds increased their ownership in firms which had higher overall risk (political and non‐political), and lower overall sentiment. Hedge funds also care about firms' exposure/sensitivity toward different political issues such as health care, technology & infrastructure, and security & defense. This suggests that hedge funds seek equity ownership in riskier stocks as a result of pandemic uncertainties.

Suggested Citation

  • Laleh Samarbakhsh & Amanjot Singh, 2022. "COVID‐19 and hedge fund equity ownership," International Review of Finance, International Review of Finance Ltd., vol. 22(2), pages 356-364, June.
    • Handle: RePEc:bla:irvfin:v:22:y:2022:i:2:p:356-364
    DOI: 10.1111/irfi.12370
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    References listed on IDEAS

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