Portfolio Transactions Costs at U.S. Equity Mutual Funds*
Portfolio Transactions Costs at U.S. Equity Mutual Funds*
The analysis in this paper suggests that hedge funds play a very positive role in financial markets by providing liquidity to thin markets where mis-priced financial instruments are to be found. This type of activity reduces volatility rather than increasing it. Indeed with the rapid growth of structured products in recent years, particularly in Europe and Asia, hedge funds have been quite critical in containing the volatility that might otherwise have arisen. Structured products are largely dri