Do Hedge Funds Supply or Demand Liquidity?

Article OPEN
Petri Jylhä; Kalle Rinne; Matti Suominen;
(2014)
  • Journal: Review of Finance,volume 18,issue 4,pages1,259-1,298
  • Related identifiers: doi: 10.1093/rof/rft033
  • Subject:
    mesheuropmc: health care economics and organizations

Regressing hedge funds’ returns on returns to a long–short contrarian trading strategy, a measure of the returns from providing liquidity, we find that hedge funds typically supply liquidity in the stock market. In the cross-section, strict redemption restrictions and l... View more
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