Hedge Fund Liquidity Management: Insights for Systemic Risk Oversight

2020 ◽  
Author(s):  
George O. Aragon ◽  
A. Tolga Ergun ◽  
Giulio Girardi
Keyword(s):  
Systemic Risk ◽  
Hedge Fund ◽  
Liquidity Management ◽  
Risk Oversight

scholarly journals Would Hedge Fund Regulation Mitigate Systemic Risk? Direct vs. Indirect Regulation Approach

2017 ◽  
Vol 10 (8) ◽  
pp. 31
Author(s):  
Mehnaz Roushan Laura ◽  
Nafiz Ul Fahad
Keyword(s):  
Financial Institutions ◽  
Systemic Risk ◽  
Hedge Fund ◽  
Regulatory Change ◽  
Industry Growth ◽  
Large Complex ◽  
Fund Industry ◽  
Regulation Approach ◽  
The Waves ◽  
Regulatory Reforms

This paper presents the direct vs. indirect debate of hedge fund regulation and attempts to find which approach is better able to mitigate systemic risk that the industry poses to the economy. The waves of regulatory reforms and enhanced concern regarding investors protection have recently brought attention of the regulators to hedge fund regulation issue. But, many academics fear that direct intervention may limit industry growth and benefit. Addressing these concerns, this paper observes the systemic importance of hedge fund industry based on four criteria’s [size, leverage, interconnectedness to large complex financial institutions (LCFIs) and herding] and concludes that although this industry is still small in terms of size and leverage, their interconnectivity with LCFIs and potential herding make them systemically significant. Hence, regulation of hedge fund is necessary to restrict the transmission of systemic events. Analysing direct and indirect approaches, this paper suggests that the counterparties are best positioned to implement this regulatory change.

scholarly journals Systemic Risk and Cross-Sectional Hedge Fund Returns

2013 ◽  
Author(s):  
Stephen J. Brown ◽  
Inchang Hwang ◽  
Francis Haeuck In ◽  
Tong Suk Kim
Keyword(s):  
Systemic Risk ◽  
Hedge Fund ◽  
Cross Sectional ◽  
Hedge Fund Returns

Hedge Fund Liquidity Management

2017 ◽  
Author(s):  
George O. Aragon ◽  
A. Tolga Ergun ◽  
Mila Getmansky ◽  
Giulio Girardi
Keyword(s):  
Hedge Fund ◽  
Liquidity Management

Direct or Indirect Regulation of Hedge Funds: A European Dilemma

2011 ◽  
Vol 2 (4) ◽  
pp. 463-480 ◽  
Author(s):  
Giorgio Tosetti Dardanelli
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Systemic Risk ◽  
Hedge Funds ◽  
Hedge Fund ◽  
Investment Fund ◽  
The European Union ◽  
Member States ◽  
Fund Managers ◽  
Eu Legislation

This paper deals with the debate on the methods to regulate hedge funds, with a particular focus on direct or indirect regulation. After having briefly examined the pros and the cons of directly regulating these investment schemes, it comes to the conclusion (largely shared by most scholars) that hedge funds should not be directly regulated, while regulation should concern their management companies and, most of all, their counterparts (lenders in the first place) with a view to managing systemic risk. In addition, regulation should also set precise thresholds for access which should aim at protecting unsophisticated investors from hazardous moves, without, however, falling into the trap of regulating hedge fund themselves.The attention is then turned to the European Union and to its Alternative Investment Fund Managers Directive (AIFMD). An analysis is conducted on some of the most significant approaches to hedge fund regulation which have fuelled (and are partly still fuelling) the debate within EU institutions in its struggle to provide Member States with a valid response to the financial crisis, and on some key provisions of the first level AIFMD. In this light the author concludes that, despite the declared intent to regulated fund managers, the directive often seems to regulate hedge fund themselves. This does not seem to be in line with the thoughts of most scholars and market operators on hedge fund regulation and also looks at odds with other pieces of EU legislation (in particular with the so-called “Newcits”).

scholarly journals Systemic risk and cross-sectional hedge fund returns

2017 ◽  
Vol 42 ◽  
pp. 109-130 ◽  
Author(s):  
Inchang Hwang ◽  
Simon Xu ◽  
Francis In ◽  
Tong Suk Kim
Keyword(s):  
Systemic Risk ◽  
Hedge Fund ◽  
Cross Sectional ◽  
Hedge Fund Returns

Monitoring systemic risk in the hedge fund sector

2017 ◽  
Vol 17 (12) ◽  
pp. 1859-1883 ◽  
Author(s):  
Frank Hespeler ◽  
Giuseppe Loiacono
Keyword(s):  
Systemic Risk ◽  
Hedge Fund
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