Hedge Funds: A Dynamic Industry in Transition

136 Pages Posted: 18 Aug 2015 Last revised: 9 Feb 2023

See all articles by Mila Getmansky Sherman

Mila Getmansky Sherman

University of Massachusetts at Amherst - Eugene M. Isenberg School of Management - Department of Finance

Peter A. Lee

AlphaSimplex Group, LLC

Andrew W. Lo

Massachusetts Institute of Technology (MIT) - Laboratory for Financial Engineering

Multiple version iconThere are 3 versions of this paper

Date Written: August 2015

Abstract

The hedge-fund industry has grown rapidly over the past two decades, offering investors unique investment opportunities that often reflect more complex risk exposures than those of traditional investments. In this article we present a selective review of the recent academic literature on hedge funds as well as updated empirical results for this industry. Our review is written from several distinct perspectives: the investor's, the portfolio manager's, the regulator's, and the academic's. Each of these perspectives offers a different set of insights into the financial system, and the combination provides surprisingly rich implications for the Efficient Markets Hypothesis, investment management, systemic risk, financial regulation, and other aspects of financial theory and practice.

Suggested Citation

Getmansky Sherman, Mila and Lee, Peter A. and Lo, Andrew W., Hedge Funds: A Dynamic Industry in Transition (August 2015). NBER Working Paper No. w21449, Available at SSRN: https://ssrn.com/abstract=2645525

Mila Getmansky Sherman (Contact Author)

University of Massachusetts at Amherst - Eugene M. Isenberg School of Management - Department of Finance ( email )

Amherst, MA 01003-4910
United States

Peter A. Lee

AlphaSimplex Group, LLC ( email )

One Cambridge Center
Cambridge, MA 02142
United States

Andrew W. Lo

Massachusetts Institute of Technology (MIT) - Laboratory for Financial Engineering ( email )

100 Main Street
E62-618
Cambridge, MA 02142
United States
617-253-0920 (Phone)
781 891-9783 (Fax)

HOME PAGE: http://web.mit.edu/alo/www

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