Hedge Fund industry: Developments and Practices

Global Financial Stability Report, October 21, 2004

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Hedge Fund industry: Developments and Practices

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Bibliographic details

• Published: October 21, 2004
• Series: Global Financial Stability Report
• DOI: https://doi.org/10.5089/9781451939262.082

Summary

• This paper analyzes developments in the hedge fund industry.
• The significant growth of hedge funds, driven by institutional investors, has heightened the desire by the official sector to better understand hedge funds and their activities.
• The paper examines how one may achieve a better understanding of hedge funds and their market activities, particularly for financial stability considerations.
• The paper reviews and updates developments in the hedge-fund industry since the previous IMF study in 1998, and considers what progress has been made to satisfy various recommendations and proposals from that time.

Major findings and developments

• Growth dynamics:
  • Hedge funds have experienced significant growth, driven by institutional investors.
• Market understanding and monitoring:
  • There is an increased desire by the official sector to better understand hedge funds and their activities for financial stability considerations.
• Historical review:
  • The paper updates developments in the hedge-fund industry since the previous IMF study in 1998 and evaluates progress on earlier recommendations and proposals.

Policy considerations and analytical focus

• Objective:
  • Improve understanding of hedge funds and their market activities to inform financial stability assessments.
• Analytical priorities:
  • Examine industry developments, exposures, and structural changes since 1998.
  • Assess progress in implementing recommendations and proposals from the earlier IMF study.

Subjects and keywords

• Subject: Arbitrage, Asset and liability management, Asset management, Commodities, Credit, Financial institutions, Government asset management, Hedge funds, Money, Mutual funds, Public financial management (PFM)
• Keywords: Arbitrage, Asset management, Credit, GFSR, Global, Government asset management, hedge fund activity, hedge fund assets, hedge fund exposure, hedge fund industry, hedge fund leverage, hedge fund manager, hedge fund structure, Hedge funds

International Monetary Fund — Global Financial Stability Report No 2004/003

References

• https://www.imf.org/en/publications/gfsr
• United States and the IMF
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• Arbitrage
• Asset and liability management
• Asset management
• Commodities
• Credit
• Financial institutions
• Government asset management
• Hedge funds
• Money
• Mutual funds
• Public financial management (PFM)
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