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Hedge funds have started to play an important role in financial markets during the last decade. They have affected important aspects of financial intermediation such as asset allocation decisions and corporate governance. Julian Holler provides an excellent theoretical and empirical analysis of these issues. His analysis offers strong support that hedge funds enable investors to improve asset allocation decisions. Consequently, hedge funds are an interesting alternative asset class for institutional investors. In contrast to results for the U.S. capital market his research provides evidence that hedge fund activism does not persistently increase the value of firms in Germany. This result suggests that the institutional environment has a strong influence on the effectiveness of corporate governance mechanisms.
List of contents
Hedge Funds as an Individual Investment and from a Portfolio Perspective. - Hedge Fund Activism and Corporate Governance in Germany. - Empirical Analysis: Optimal Asset Allocation with Hedge Funds and the Valuation Effects of Hedge Fund Activism in Germany.
About the author
Julian Holler was a research assistant at the Center for Banking and Finance at the University Giessen (Prof. Dr. Wolfgang Bessler). He works as a consultant focusing on energy and commodity markets in Frankfurt a.M.
Summary
Hedge funds have started to play an important role in financial markets during the last decade. They have affected important aspects of financial intermediation such as asset allocation decisions and corporate governance. Julian Holler provides an excellent theoretical and empirical analysis of these issues. His analysis offers strong support that hedge funds enable investors to improve asset allocation decisions. Consequently, hedge funds are an interesting alternative asset class for institutional investors. In contrast to results for the U.S. capital market his research provides evidence that hedge fund activism does not persistently increase the value of firms in Germany. This result suggests that the institutional environment has a strong influence on the effectiveness of corporate governance mechanisms.
Additional text
"Eine interessante Lektüre für alle (Investoren), die sich eingehender mit Hedgefonds beschäftigen möchten." Absolut report, 3-2012
Report
"Eine interessante Lektüre für alle (Investoren), die sich eingehender mit Hedgefonds beschäftigen möchten." Absolut report, 3-2012
