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Hedge funds - evolution and perspectives

Author

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  • Ganchev, Alexander

Abstract

The article reviews and analyses the origins of the hedge fund sector and its development on a worldwide scale. The study reveals that hedge funds had arisen long before 1949 and shows that global financial crises do not occur due to hedge funds because the latter only exploit economic development disparities, the imperfections of financial systems, the inadequate regulatory frameworks or the inefficient financial market regulations that are already in place. The article shows that, although the development of the hedge fund industry is very sensitive to financial crises, their popularity as investment instruments has been increasing rather than decreasing since the last global economic crisis of 2008.

Suggested Citation

  • Ganchev, Alexander, 2015. "Hedge funds - evolution and perspectives," MPRA Paper 70050, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:70050
    as

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    File URL: https://mpra.ub.uni-muenchen.de/70050/1/MPRA_paper_70050.pdf
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    References listed on IDEAS

    as
    1. Mrs. Anne C Jansen & Mr. Donald J Mathieson & Mr. Barry J. Eichengreen & Ms. Laura E. Kodres & Mr. Bankim Chadha & Mr. Sunil Sharma, 1998. "Hedge Funds and Financial Market Dynamics," IMF Occasional Papers 1998/009, International Monetary Fund.
    2. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(2), pages 65-86.
    3. Fink, Matthew P, 2008. "The Rise of Mutual Funds: An Insider's View," OUP Catalogue, Oxford University Press, number 9780195336450.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Hedge funds; financial markets; financial crises;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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