Abstract
| Original language | English |
|---|---|
| Title of host publication | Oxford handbook of hedge funds |
| Editors | Douglas Cumming, Geoffrey Wood, Sofia Johan |
| Publisher | Oxford University Press |
| Publication status | Accepted/In press - 2020 |
Publication series
| Name | Oxford Handbooks |
|---|---|
| Publisher | Oxford University Press |
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The lost decade for hedge funds : Three threats. / Mc Cahery, Joseph; de Roode, Alexander .
Oxford handbook of hedge funds. ed. / Douglas Cumming; Geoffrey Wood; Sofia Johan. Oxford University Press, 2020. (Oxford Handbooks ).Research output: Chapter in Book/Report/Conference proceeding › Chapter › Scientific › peer-review
TY - CHAP
T1 - The lost decade for hedge funds
T2 - Three threats
AU - Mc Cahery, Joseph
AU - de Roode, Alexander
PY - 2020
Y1 - 2020
N2 - The last decade has challenged the paradigm of the hedge fund industry as a unique performer. We identify three main factors that have affected the operation of hedge funds: competition from mutual funds, the market environment, and tighter regulation. Recent trends in the financial industry have moved asset managers closer to hedge funds by introducing similar underlying strategies, such as liquid alternative funds, to directly compete with hedge funds. We find that such strategies can achieve performance similar to that of hedge funds, thus introducing more competition for hedge funds. Moreover, we find that several hedge fund styles that have traditionally worked well in crisis times—even in the last decade—are also strategies that can be replicated by liquid alternatives. Together with tighter regulation and a strong market environment, these developments continue to put pressure on the hedge fund industry. Our empirical findings add to the existing debate on the performance of hedge funds and the direct competition from liquid alternatives.
AB - The last decade has challenged the paradigm of the hedge fund industry as a unique performer. We identify three main factors that have affected the operation of hedge funds: competition from mutual funds, the market environment, and tighter regulation. Recent trends in the financial industry have moved asset managers closer to hedge funds by introducing similar underlying strategies, such as liquid alternative funds, to directly compete with hedge funds. We find that such strategies can achieve performance similar to that of hedge funds, thus introducing more competition for hedge funds. Moreover, we find that several hedge fund styles that have traditionally worked well in crisis times—even in the last decade—are also strategies that can be replicated by liquid alternatives. Together with tighter regulation and a strong market environment, these developments continue to put pressure on the hedge fund industry. Our empirical findings add to the existing debate on the performance of hedge funds and the direct competition from liquid alternatives.
M3 - Chapter
T3 - Oxford Handbooks
BT - Oxford handbook of hedge funds
A2 - Cumming, Douglas
A2 - Wood, Geoffrey
A2 - Johan, Sofia
PB - Oxford University Press
ER -