Shultz

Hedge m itary resource: Past, Present, and Future René M. Stulz* February 2007 * René M. Stulz is the Everett D. Reese Chair of Banking and Monetary Economics, The Ohio State University. He is also a Research Associate of the National chest of drawers of Economic Research, and a Fellow of the European Corporate governing body Institute. His e-mail address is Stulz@cob.osu.edu. I am grateful for comments from Joe Chen, provoke DeAngelo, David Hsieh, Ravi Jagannathan, Andrei Shleifer, Jeremy Stein, Tim Taylor, and Michael Waldman, and scientific assistance from Jérôme Taillard. Hedge Funds: Past, Present, and Future Abstract Assets managed by put off funds have liberal faster over the last ten years than assets managed by mutual funds. Hedge funds and mutual funds coiffure the same economic function, but hedge funds are largely unregulated while mutual funds are tightly regulated. This paper compares the organization, performance, and risks of hedge funds and mutual funds. It thus examines whether one can expect increasing convergence mingled with these two investment vehicles and concludes that the performance gap between hedge funds and mutual funds result narrow, that regulatory developments provide limit the flexibility of hedge funds, and that hedge funds will become more(prenominal) institutionalized.

1 Hedge funds often micturate headlines because of spectacular losses or spectacular gains. In folk 2006, a large hedge fund, Amaranth, reported losses of more than $6 meg apparently incurred in only one month, representing a negative return over that month of nigh 66 share. Earlier in the year, newspapers focused on the $1.4 billion compensation in 2005 of hedge fund manager Boone Pickens and the 650 percent return that year of his BP Capital Commodity Fund (Anderson, 2006a). The sizeableness of hedge funds in the daily life of monetary markets does not make the same headlines, but it has grown tremendously. fit to recent estimates, hedge funds account for close to fractional the... If you want to get a full essay, order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!