Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • PA Reports
  • Submit an article
  • More
    • About JAI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • CAIA Member Login
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • LinkedIn
  • Twitter

User menu

  • Sample our Content
  • Request a Demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Alternative Investments
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a Demo
  • Log in
The Journal of Alternative Investments

The Journal of Alternative Investments

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • PA Reports
  • Submit an article
  • More
    • About JAI
    • Editorial Board
    • Published Ahead of Print (PAP)
  • CAIA Member Login
  • LinkedIn
  • Twitter
Primary Article

Hedge Fund Crisis and Financial Contagion

Evidence from Long-Term Capital Management

John M. Halstead, Shantaram P Hegde and Linda Schmid Klein
The Journal of Alternative Investments Summer 2005, 8 (1) 65-82; DOI: https://doi.org/10.3905/jai.2005.523083
John M. Halstead
An assistant professor of finance at Southern Connecticut State University in New Haven, CT.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: halstead@southernct.edu
Shantaram P Hegde
A professor of finance at the University of Connecticut in Storrs, CT.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: shantaram@business.uconn.edu
Linda Schmid Klein
An associate professor of finance at the University of Connecticut.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: lin@business.uconn.edu
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Abstract

This article examines the spillover effects of the collapse and bailout of Long-Term Capital Management (LTCM) on the stocks of a large sample of exposed and unexposed banks and brokerage houses to search for evidence of financial contagion. The basic finding is that the LTCM crisis led to widespread losses for financial institutions, including even regional and local banks and those with no known exposure to hedge funds. However, after controlling for characteristics that influence firms' vulnerability to an exogenous economic shock, the authors find that the unexposed banks and brokerage houses remain virtually unscathed by the crisis. Hence, the results suggest that the market response to the financial turmoil at LTCM was rational, and the crisis only affected firms with exposure to hedge fund activities.

  • © 2005 Pageant Media Ltd

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Alternative Investments
Vol. 8, Issue 1
Summer 2005
  • Table of Contents
  • Index by author
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Alternative Investments.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Hedge Fund Crisis and Financial Contagion
(Your Name) has sent you a message from The Journal of Alternative Investments
(Your Name) thought you would like to see the The Journal of Alternative Investments web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Hedge Fund Crisis and Financial Contagion
John M. Halstead, Shantaram P Hegde, Linda Schmid Klein
The Journal of Alternative Investments Jun 2005, 8 (1) 65-82; DOI: 10.3905/jai.2005.523083

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Hedge Fund Crisis and Financial Contagion
John M. Halstead, Shantaram P Hegde, Linda Schmid Klein
The Journal of Alternative Investments Jun 2005, 8 (1) 65-82; DOI: 10.3905/jai.2005.523083
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar

More in this TOC Section

  • Replication and Benchmarking of Hedge Funds
  • Using Life Extension-Duration and Life Extension-Convexity to Value Senior Life Settlement Contracts
  • Performance Characteristics of Hedge Fund Replication Programs
Show more Primary Article
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 13 1600
 
NEW YORK
41 Madison Avenue, 20th Floor, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • LinkedIn
  • Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 1520-3255 | E-ISSN: 2168-8435

  • Site Map
  • Terms & Conditions
  • Privacy Policy
  • Cookies