Pension funds investments in hedge funds-a necessary regulation

Daniela Gaftoniuc

Manager Journal, 2010, vol. 12, issue 1, 72-75

Abstract: When it comes to investment strategies, generally, pension funds have proved to be conservative investors with a long term approach on investments and constant preoccupation for asset diversification as well as tendencies to secure their portfolios through investments in established financial products. Nevertheless, within this constant preoccupation for portfolio diversification as well as gain of notable profits, private pension funds have invested to a certain degree also in less cautious products respectively have conducted less stable investments. The financial turbulences that hit the US towards the end of 2007 and spread globally to become one of the most severe financial crisis witnessed, haven’t left pension funds immune to this phenomenon. Although, as previously stated, the special feature of pension funds is based on long term investments, which confers a certain degree of natural protection, there can not be the talk of absolute immunity either.

Keywords: hedge funds; financial turbulences; diversified portfolio; aggressive investment strategies; risk control measures; derivative products; systemic risks; hedge fund industry; transparency; qualitative and quantitative restrictions; supervisory authorities. (search for similar items in EconPapers)
Date: 2010
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