PT - JOURNAL ARTICLE AU - Richard Sias AU - H.J. Turtle AU - Blerina Zykaj TI - Reconsidering Hedge Fund Contagion AID - 10.3905/jai.2018.21.1.027 DP - 2018 Jun 30 TA - The Journal of Alternative Investments PG - 27--38 VI - 21 IP - 1 4099 - https://pm-research.com/content/21/1/27.short 4100 - https://pm-research.com/content/21/1/27.full AB - A widely held view concerning hedge funds is that they act as a negative disruptive force in financial markets due to “contagion.” Hedge funds are often viewed as culprits in both the 2007–2008 financial crisis and the 2007 quant crisis, for example. The authors evaluate both existing and new evidence of: 1) hedge fund contagion, 2) hedge fund crowding, 3) hedge funds’ role in the 2007–2008 financial crisis, and 4) hedge funds’ role in the August 2007 quant crisis. Contrary to conventional wisdom, the popular press, and most academic work, the authors find little evidence to support the view that hedge fund contagion has widespread negative effects on markets and mispricing.TOPICS: Real assets/alternative investments/private equity, financial crises and financial market history, tail risks