Hedgeové fondy a akciové trhy [Hedge Funds and Stock Markets]

The presented article can be divided in three main parts. In the first one the authors define the term hedge fund and discuss briefly the history of these investment entities and their current position on the global financial markets. The second part of the article investigates the impact of hedge fund activities on stock markets. The findings of this analysis which is based on descriptive statistics and distribution of the yields of a hedge fund index and two representative stock market indices and the lagged correlation between them don't indicate that hedge funds have the potential to contribute in a significant way to the instability of stock markets. The third and final part of the article deals with the regulation of hedge funds. While the regulation of these investment vehicles before the 2007-2008 global financial crisis was rather light, significant changes were adopted as part of the regulatory response and overhaul of the financial markets. The Dodd-Frank Act in the US implemented among others new registration requirements for hedge funds and their advisors and imposed wide ranging information and record-keeping requirements on their activities.