PT  - JOURNAL ARTICLE
AU  - Jan Loeys
AU  - Laurent Fransolet
TI  - Have Hedge Funds Eroded Market Opportunities?
AID  - 10.3905/jai.2004.461455
DP  - 2004 Dec 31
TA  - The Journal of Alternative Investments
PG  - 10--33
VI  - 7
IP  - 3
4099  - https://pm-research.com/content/7/3/10.short
4100  - https://pm-research.com/content/7/3/10.full
AB  - Hedge funds, with almost $1 trillion under management before leverage, have become a dominant force in market trading. As they grow larger, they will eventually erode the market opportunities and mispricings they have relied on to create their superior returns. Opportunities seem to disappear fastest where hedge funds are very active and remain ample where there are fewer hedge funds. This article discusses whether and how hedge funds erode opportunities in interest–rate, credit, equity, and currency markets. The authors believe that this erosion will prove temporary, with new active trading opportunities emerging in the near future.