## Hedge Funds: What Do We Really Know?

_Economic Issues, September 27, 1999_

## Source details

**Canonical URL:** [Hedge Funds: What Do We Really Know?](https://www.imf.org/en/publications/economic-issues/issues/2016/12/30/hedge-funds-what-do-we-really-know-3221)

## Other formats

- [Markdown version](/en/publications/economic-issues/issues/2016/12/30/hedge-funds-what-do-we-really-know-3221/index.md)
- [Structured JSON version](/en/publications/economic-issues/issues/2016/12/30/hedge-funds-what-do-we-really-know-3221/index.json)
- [Bundle manifest](/en/publications/economic-issues/issues/2016/12/30/hedge-funds-what-do-we-really-know-3221/bundle-manifest.json)

## Bibliographic details
- Authors: Barry J. Eichengreen, Donald J Mathieson
- Published: September 27, 1999
- Series: Economic Issues
- DOI: https://doi.org/10.5089/9781557758491.051

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### Overview and purpose
- Authors: Barry J. Eichengreen, Donald J Mathieson
- Date: September 27, 1999
- Purpose: Discuss the size, number, and investment styles of hedge funds; analyze their interactions with global financial markets; review the present state of their supervision and regulation; and assess suggestions for closer regulation as part of broader financial-market regulatory approaches.

### Historical episodes highlighted
- 1992: Hedge funds implicated in crises that led to major exchange rate realignments in the European Monetary System.
- 1994: Hedge funds implicated after a period of turbulence in international bond markets.
- 1997: Concerns about hedge fund roles following financial upheavals in Asia.
- 1998: Amplified concerns with allegations of large hedge fund transactions in various Asian currency markets and the near collapse of a major hedge fund, Long-Term Capital Management (LTCM).

### Major themes and substantive findings
- Size, number, and investment styles of hedge funds:
  - The paper discusses hedge funds' size, number, and investment styles (no aggregate numeric totals provided on the landing page).
- Interactions with global financial markets:
  - The paper examines how hedge funds interact with global financial markets and how episodes of volatility draw attention to their market role.
- Supervision and regulation:
  - Reviews the present state of hedge fund supervision and regulation as of publication.
  - Assesses various suggestions for regulating hedge funds more closely, often within broader regulatory approaches to financial markets.
- Case study emphasis:
  - The Long-Term Capital Management (LTCM) episode is used as a focal example of systemic concern.

### Subject classifications and keywords
- Subject: Banking, Commercial banks, Financial institutions, Hedge funds, Mutual funds, Securities, Stocks
- Keywords: Commercial banks, EI, forward sale, fund, Global, hedge fund, hedge fund customer, hedge fund strategy, hedge fund's loss, Hedge funds, hedge funds' activity, institutional investor, investment activities of a hedge fund, Long-Term Capital Management, LTCM episode, LTCM rescue, LTCM situation, managed futures, market, Mutual funds, regulation of the hedge fund industry, Securities, Stocks, total borrowing

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_Source: https://www.imf.org/en/publications/economic-issues/issues/2016/12/30/hedge-funds-what-do-we-really-know-3221_