March 16, 2011

Hedge Funds’ Role in the Recession

Veronique de Rugy

Senior Research Fellow

Veronique de Rugy debunks the myth that hedge fund risk taking was a key driver of the financial crisis.

“While there is volatility in the hedge fund market, it always outperforms the stock market in downturns, and hedge funds are much less volatile than the stock market,” said de Rugy. “They may not go as high, but during downtowns, they don’t lose as much money.”