The Global Hedge Fund Industry: Structure, Strategies and Growth

2017 ◽  
Vol 18 (4) ◽  
pp. 955-973
Author(s):  
Inder Sekhar Yadav ◽  
R.K. Mishra
Keyword(s):  
Hedge Fund ◽  
Industry Structure ◽  
Investment Strategies ◽  
Global Crisis ◽  
Fund Managers ◽  
Risk Return ◽  
Fund Industry ◽  
Fund Investment

The principal aim of this study is to provide the structure, organization, growth and risk-return profile of global hedge fund industry. In particular, the objective of the study is to introduce the evolution of the global hedge fund industry and some of the most common hedge fund investment strategies used by the fund managers. Also, the present study intends to provide some current statistics of the global hedge fund industry pre- and post-global crisis of 2008.

Portraits of five hedge fund fraud cases

2008 ◽  
Vol 15 (2) ◽  
pp. 179-213 ◽  
Author(s):  
Majed R. Muhtaseb ◽  
Chun Chun “Sylvia” Yang
Keyword(s):  
Asset Management ◽  
Hedge Funds ◽  
Hedge Fund ◽  
Investment Fund ◽  
Good Opportunity ◽  
Content Type ◽  
Fund Managers ◽  
Management Group ◽  
Fund Industry ◽  
Asset Managers

PurposeThe purpose of this paper is two fold: educate investors about hedge fund managers' activities prior to the fraud recognition by the authorities and to help investors and other stakeholders in the hedge fund industry identify red flags before fraud is actually committed.Design/methodology/approachThe paper investigates fraud committed by the Bayou Funds, Beacon Hill Asset Management, Lancer Management Group (LMG), Lipper & Company and Maricopa investment fund. The fraud activities took place during 2000 and 2005.FindingsThe five cases alone cost the hedge fund investors more than $1.5 billion. Investors may have had a good opportunity for avoiding the irrecoverable costs of the fraud had they carefully vetted the backgrounds of the hedge fund managers and/or continuously monitored the funds activities, especially during turbulent market environments.Originality/valueThis is the first research paper to identify and extensively investigate fraud committed by hedge funds. In spite of the size of the hedge fund industry and relatively substantial level and inevitably recurring fraud, academic journals are to yet address this issue. The paper is of great value to hedge funds and their individual and institutional investors, asset managers, financial advisers and regulators.

Hedge fund investment strategies: Actual practice

2019 ◽  
Vol 25 (11) ◽  
pp. 2594-2605
Author(s):  
A.A. Mishin ◽  
Keyword(s):  
Hedge Fund ◽  
Actual Practice ◽  
Investment Strategies ◽  
Fund Investment

Hedge Funds and Herding Behavior

2021 ◽  
pp. 190-214
Author(s):  
Neil M. Kellard
Keyword(s):  
Hedge Funds ◽  
Institutional Investors ◽  
Hedge Fund ◽  
Industry Structure ◽  
Sociological Perspective ◽  
Herding Behavior ◽  
Fund Managers ◽  
Trading Patterns ◽  
Potential Market ◽  
Network Risk

This chapter examines whether hedge funds herd, how this herding occurs, and any potential market wide effects. Bringing together the mainstream finance literature and that from a more management and sociological perspective, it is shown that hedge funds herd, although there is some evidence this is less than other large institutional investors. Mechanistically, such consensus trades occur because hedge firms communicate within tight knit clusters of trusted and smart managers, who share and analyze trading positions together. This industry structure is a function of the hyper decision-making environment faced by hedge fund managers, coupled with a desire for legitimization and to maintain reputation. Finally, note that hedge fund herding can have market wide effects either directly via network risk and indirectly, as follower institutional investors amplify hedge fund trading patterns.

Sentiment and the Effectiveness of Technical Analysis: Evidence from the Hedge Fund Industry

2016 ◽  
Vol 51 (6) ◽  
pp. 1991-2013 ◽  
Author(s):  
David M. Smith ◽  
Na Wang ◽  
Ying Wang ◽  
Edward J. Zychowicz
Keyword(s):  
Hedge Funds ◽  
Lower Risk ◽  
Market Timing ◽  
Hedge Fund ◽  
Technical Analysis ◽  
Fund Managers ◽  
Short Sale ◽  
Timing Ability ◽  
Fund Industry

This article presents a unique test of the effectiveness of technical analysis in different sentiment environments by focusing on its usage by perhaps the most sophisticated and astute investors, namely, hedge fund managers. We document that during high-sentiment periods, hedge funds using technical analysis exhibit higher performance, lower risk, and superior market-timing ability than nonusers. The advantages of using technical analysis disappear or even reverse in low-sentiment periods. Our findings are consistent with the view that technical analysis is relatively more useful in high-sentiment periods with larger mispricing, which cannot be fully exploited by arbitrage activities because of short-sale impediments.

Hedge Funds Fundamentals

2017 ◽  
Author(s):  
H. Kent Baker ◽  
Greg Filbeck
Keyword(s):  
Hedge Funds ◽  
Hedge Fund ◽  
Fund Performance ◽  
Investment Strategies ◽  
Intended Audience ◽  
History Of ◽  
Background Material ◽  
Fund Investment ◽  
Hedge Fund Performance ◽  
Distinguishing Features

This chapter provides background material for understanding the multifaceted nature of hedge funds. The first section begins by defining a hedge fund, followed by a discussion of distinguishing characteristics, benefits and risks, history of hedge funds, hedge fund investment strategies, funds of funds, hedge fund performance, and hedge fund biases, including selection bias, survivorship bias, backfill bias, and liquidation bias. The next section discusses the purpose of the book followed by sections on its distinguishing features and the intended audience. The chapter then outlines the six major parts of the book, including an abstract for each of the remaining 29 chapters. These six parts are (1) background, (2) structure of hedge funds, (3) investment strategies of hedge funds, (4) risk and regulation, (5) hedge fund performance, and (6) issues, trends, and future prospects of hedge funds. The final section offers a summary and conclusions.

Issues in Hedge Fund Research

2017 ◽  
Author(s):  
Thuy Bui ◽  
Abhishek Ganguly
Keyword(s):  
Performance Measurement ◽  
Hedge Funds ◽  
Hedge Fund ◽  
Financial Innovation ◽  
Investment Strategies ◽  
Regulatory Oversight ◽  
Fund Managers ◽  
Disclosure Requirements ◽  
Measurement Biases ◽  
Fund Research

This chapter explores the various issues and challenges that confront financial economists researching hedge funds. Besides being complex investment vehicles, hedge funds are private entities that are subject to little regulation and disclosure requirements and are less transparent by nature. Such lax regulatory oversight also enables hedge funds to become the venues for financial innovation and cutting-edge investment strategies. As a result, research in hedge funds not only attempts to keep up with the continuous advancement in strategies employed by hedge fund managers but also suffers from several data issues, performance measurement biases, and endogeneity issues. These biases in hedge fund research considerably limit the accuracy and, more importantly, the generalizability of the findings. Thus, users of hedge fund research should be mindful of its limitations.

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