# kaal:claim:2748096-012

**Claim.** The contagion story, in which hedge fund losses spread to other financial institutions and undermine systemic stability, is counterbalanced in practice because hedge fund collapses are rarely sudden and almost always unfold in incremental steps over a long period.

**Type.** failure  **Support.** argued

**Holds when.**

- describes observed hedge fund collapse dynamics rather than theoretical models

**Source quote.**

> First, hedge fund collapses are rarely sudden but in practice almost always occur in incremental steps over a long time period.

**From.** Wulf A. Kaal, Timothy A. Krause, *Hedge Funds and Systemic Risk* (2016), Hedge Funds' Contributions to the Financial Crisis of 2007-2008, page 6

**Cite as.** Wulf A. Kaal, Timothy A. Krause, Hedge Funds and Systemic Risk (2016). SSRN: https://ssrn.com/abstract=2748096

**Verify.** sha256 of source PDF `8f30260f2c1db728b45c4f3b9b7c64358cf9d3217277bc3c63a910c32f87b508` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Krause%20-%202016%20-%20Hedge%20Funds%20and%20Systemic%20Risk.pdf

**Failure mode.** gradual collapse defeats contagion channel  (family: systemic-risk-transmission)

**Topics.** systemic-risk, risk-and-incentives

**Keywords.** contagion, fund-failure-dynamics, systemic-risk, theory-versus-practice

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.