[금융]헤지펀드의 긍정적/부정적 영향 (Hedge fund effect)

소개글

헤지펀드의 긍정적/부정적 영향에 대해서 요약한 글입니다.
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목차

Hedge Funds’ Role and impact on international financial markets
[Positive effect]
① Injecting liquidity into markets
② Market stabilizing
[Negative effect]
① Monopolistically distorting power (herd behavior)
② Risks
③ Causing derangements in small-sized or low liquidity market

본문내용

Hedge Funds’ Role and impact on international financial markets

[Positive effect]
① Injecting liquidity into markets
Generally speaking, the existence of investors, including hedge funds, who are willing to take risks provide the liquidity to the market and allows easier reallocation of market risks. Some argue that hedge funds, as willing risk takers, have played a role of a lubricant in the market.

② Market stabilizing
Speculation performs a market stabilizing function when, for example, someone buys an asset when its price is low and sells it when the price is high in a situation where there is only actual demand. In this case, the speculator can make profits, but prices tend to be equalized since there would be additional demand when prices are low and there would be additional supply when prices are high. In this connection, the IMF report released last May gives a positive evaluation on the function of hedge funds; while a mutual fund that enjoys high returns may attract new investors and be bound by its prospectus to buy more of the recently appreciated asset and other institutional investors may be forced to cut their losses by their internal controls and to sell into a falling market, hedge funds are better able to ride out these fluctuations because their investors are locked in for substantial periods and thus hedge fund should stabilize the market.

참고 자료

Hedge Funds and International Financial Markets, Takehiko Nakao, Director, International Organization Division, Ministry of Finance