Work

Hedge Funds: Past, Present, and Future

Year: 2007

Type: article

Abstract: Assets managed by hedge funds have grown faster over the last ten years than assets managed by mutual funds. Hedge funds and mutual funds perform 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 then examines whether one can expect increasing convergence between these two investment vehicles and concludes that the performance gap between hedge funds and mutual funds will narrow, that regulatory developments will limit the flexibility of hedge funds, and that hedge funds will become more institutionalized.

Source: The Journal of Economic Perspectives

DOI: 10.1257/jep.21.2.175

Author: René M Stulz

Institutions: National Bureau of Economic Research, The Ohio State University

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3123086468

FWCI: 17.08

Cites: 31

Cited by: 262

Related to: 9