Impact of the Economic Slump on the UK Hedge Funds Research Paper by Nicky

Impact of the Economic Slump on the UK Hedge Funds
A research paper that investigates how UK Hedge Funds were affected by the economic slump that occurred in the United Kingdom.
# 147715 | 11,946 words | 41 sources | APA | 2011 | US
Published on Jun 17, 2011 in Business (Finance, Investment and Banking) , Economics (General)


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Description:

The purpose of this research study is to attempt to discern the impact that the economic slump in the United Kingdom has had on the United Kingdom hedge funds industry. It focuses on answering specific questions relating to Hedge Fund investment in the United Kingdom and uses methodology of a qualitative nature conducted through a review of literature and professional and business reports. Findings include those which demonstrate that greater accountability will be an issue in hedge fund investment by investors. The paper also includes some tables of figures that provide further information and finishes with some recommendations for further study.

Outline:
Introduction
Research Questions
Terms & Definitions
Significance of the Study
Hypothesis
Expected Results
Organization of the Rest of the Study
Literature Review
Research Methodology
Analysis, Tests and Results
Discussion and Evaluation
Conclusions of the Study
Limitations of the Study
Recommendations of the Study

From the Paper:

''It is additionally related that pushing for tougher hedge fund rules are German Chancellor Angela Merkel, French President Nicolas Sarkozy and EU Internal Market Commissioner Charlie McCreevy...as the credit crisis ravages Europe's economy." (Arab Times, 2009) The argument posed by hedge funds is that there has been very little in the way of systemic risk posed by hedge funds "despite the often heavy losses and huge money outflows, while some far more highly leveraged banks have collapsed or been forced to seek state help." (Arab Times, 2009) Leverage is stated to magnify the profits of the hedge funds also magnifies their losses and presently leverage is stated to be lower than prior to the crisis as banks have "reduced their balance sheets." (Arab Times, 2009)
''It is stated that in October 2008 "the average prime broker leverage fell to around 1.15 times from around 1.9 times in October of the previous year according to the data from the UK Financial Services Authority (FSA). That is stated to be "well below leverage at Long Term Capital Management" which upon collapsing "posed a grave threat to the global financial system as the funds leverage was estimated to have been approximately 20 to 30 and rising to 100 in one point. It is held that borrowing "is likely to rise again as banks return to this lucrative business." (Arab Times, 2009)''

Sample of Sources Used:

  • Agarwal, V. and Naik, N.Y. (2000) Multi-Period Performance Persistence Analysis of Hedge Funds. Journal of Financial and Quantitative Analysis.
  • Agarwal, V. and Naik, N.Y. (2004) Multi-Period Performance Persistence Analysis of Hedge Funds. papers.ssrn.com.
  • Agarwal, V. Naik, Y. and Narayan, Y. (2000) Generalized Style Analysis of Hedge Funds. Journal of Asset Management.
  • Agarwal, V., Daniel, N.D. and Naik, N.Y. (2005) Role of managerial incentives, flexibility, and ability: Evidence from performance and money flows in hedge funds.
  • Amenc, Noel, Bied, Sina el and Martellini, Lionel (2003) Predictability in Hedge Fund Returns. Financial Analysts Journal.

Cite this Research Paper:

APA Format

Impact of the Economic Slump on the UK Hedge Funds (2011, June 17) Retrieved February 20, 2020, from https://www.academon.com/research-paper/impact-of-the-economic-slump-on-the-uk-hedge-funds-147715/

MLA Format

"Impact of the Economic Slump on the UK Hedge Funds" 17 June 2011. Web. 20 February. 2020. <https://www.academon.com/research-paper/impact-of-the-economic-slump-on-the-uk-hedge-funds-147715/>

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