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DR. MARK HENDRICKSON: THE PROBLEM WITH HEDGE FUNDS |
Recently, yet another hedge fund, Archegos Capital, was forced to liquidate huge amounts of blue-chip stock holdings. The damage was severe: causing several large stocks to plummet and leaving at least three banks with financial hardships. In this article, economist Dr. Mark Hendrickson asks: Are hedge funds rogue institutions that should be banned? He writes, “Hedge funds have an enormous image problem. We only seem to hear about them when one blows up or when a headline trumpets that a hedge fund manager paid a record-breaking price for some property.”
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