Due to the ever-increasing amounts under management and their unregulated and opaque nature, hedge funds have emerged as a key concern for policymakers. While until now, hedge funds have been left essentially unregulated, we are seeing increasing calls for regulation fo... View more
3 Macro funds attempt to identify inefficient pricing in stock markets, interest rates, foreign exchange rates, and physical commodities. Their top-down approach concentrates on understanding how global macroeconomic and political events affect the valuations of financial instruments; they tend to have broad investment mandates that allow them to hold positions in practically any financial instrument in any market.
4 Fung (W.) and Hsieh (D. A.) (2000): “Measuring the market impact of hedge funds”, Journal of Empirical Finance, vol. 7, pp. 1-36.
2001 2002 2003 2004 2005 2006 USD classified held by US and foreign banking organizations USD classified held by nonbanks Nonbanks' share of total classifications (right-hand scale)
23 Steel (R. K.) (2007): “Remarks of under secretary for domestic finance Robert K. Steel on private pools of capital,” February 27.
24 Ferguson (R.) (2006): “Financial regulation: seeking the middle way,” Fourth Joint Central Bank Research Conference on Risk Management and Systemic Risk, Frankfurt, Germany, November.