# kaal:claim:2748096-031

**Claim.** Hedge fund redemptions and margin calls, both liquidity reducing events, were the primary drivers of asset selloffs during the financial crisis of 2007-2008, and hedge fund investors are three times more likely than mutual fund investors to withdraw capital during market downturns.

**Type.** empirical  **Support.** evidenced

**Holds when.**

- financial crisis of 2007-2008
- comparison group is mutual fund investors

**Source quote.**

> hedge fund redemptions and margin calls, which are liquidity reducing events, were the primary drivers of selloffs during the financial crisis of 2007-2008. They demonstrate that hedge fund investors are three times more likely to withdraw capital during market downturns

**From.** Wulf A. Kaal, Timothy A. Krause, *Hedge Funds and Systemic Risk* (2016), POST-CRISIS EVIDENCE ON THE SYSTEMIC RISK OF HEDGE FUNDS, page 13

**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

**Topics.** risk-and-incentives

**Keywords.** redemptions, margin-calls, selloffs, investor-behavior

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