RT Journal Article
SR Electronic
T1 Is Greed Still Good? <em>What Have Hedge</em>
               <br/>
               <em>Fund Managers and Investors Learned</em>
               <br/>
               <em>from the 2008 Crisis?</em>
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 42
OP 48
DO 10.3905/jwm.2011.14.2.042
VO 14
IS 2
A1 Greg N. Gregoriou
A1 François-Serge Lhabitant
YR 2011
UL https://pm-research.com/content/14/2/42.abstract
AB Have investors and hedge fund managers learned anything from their recent mistakes? One can doubt it. While each financial crisis has its unique features, common traits and warning signals surface repeatedly. In this article, the authors have chosen to discuss six of them, namely (a) the belief that the current situation bears little similarity to past disasters; (b) the misalignment of interests between principals and agents; (c) the mismatch of liquidity between assets and liabilities; (d) the increased use of leverage when returns are disappointing; (e) the increased complexity of the strategies and instruments traded; and (f) the lack of reliability of external due diligence providers. They conclude that, unfortunately, many of these signs seem to be back again in the world of hedge funds.TOPICS: Real assets/alternative investments/private equity, in markets, financial crises and financial market history