RT Journal Article SR Electronic T1 Have Hedge Funds Eroded Market Opportunities? JF The Journal of Alternative Investments FD Institutional Investor Journals SP 10 OP 33 DO 10.3905/jai.2004.461455 VO 7 IS 3 A1 Jan Loeys A1 Laurent Fransolet YR 2004 UL https://pm-research.com/content/7/3/10.abstract 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.