Tuesday, June 10, 2014

 

Hedge Fund Holdings and Stock Market Efficiency

By Charles Cao, Penn State University; Bing Liang, University of Massachusetts; Andrew W. Lo, MIT Sloan School of Management; and Lubomir Petrasek, Board of Governors of the Federal Reserve System

In their paper, the authors examine the hypothesis that hedge funds contribute more to informational efficiency than other types of institutional investors, and find that the effect of hedge fund ownership on stock price efficiency is greater than the effects of ownership by mutual funds, banks, or other financial institutions.

Download the full article here.

From the June 2014 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.

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