Abstract

The authors find that hedge funds during the 2008 financial crisis did not systematically benefit from opportunistic trading, which could have generated systemic risks in financial markets. Although some funds that used leverage actually performed worse than expected given ex ante risk-factor loadings, this result was most likely caused by meeting redemptions rather than by forced selling during the crisis.

Note: Research papers posted on SSRN, including any findings, may differ from the final version chosen for publication in academic journals.

---

• Keyword(s):
• finance 265
• hedge funds 12
• risk management 53

View Working Paper View Publication on UNC Library View Publication on Journal Site