Hedge Funds and Financial Market Dynamics

Occasional Papers, May 15, 1998

Source details

Canonical URL

Hedge Funds and Financial Market Dynamics

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Authors: Anne C Jansen, Donald J Mathieson, Barry J. Eichengreen, Laura E. Kodres, Bankim Chadha, Sunil Sharma
• Published: May 15, 1998
• Series: Occasional Papers
• DOI: https://doi.org/10.5089/9781557757364.084

Overview and scope

• Hedge funds are described as collective investment vehicles, often organized as private partnerships and resident offshore for tax and regulatory purposes.
• The paper considers the role of hedge funds in financial market dynamics, with particular reference to the Asian crisis.
• Legal status of hedge funds places few restrictions on their portfolios and transactions, leaving managers free to use:
  • short sales
  • derivative securities
  • leverage

to raise returns and cushion risk.

Key substantive points from the paper

• Characterization of hedge funds:
  • Organized as private partnerships.
  • Often resident offshore for tax and regulatory purposes.
  • Operate with few legal restrictions on portfolios and transactions.
• Common strategies and instruments highlighted:
  • Short sales
  • Derivative securities
  • Leverage
• Analytical focus:
  • Role of hedge funds in financial market dynamics.
  • Particular reference to the Asian crisis (as a case or context for analysis).

Related platform and access note

• The IMF eLibrary offers over 25,000 IMF publications in multiple formats.

Source: Hedge Funds and Financial Market Dynamics, Occasional Paper No. 1998/009, International Monetary Fund.