kaal:claim:2748096-033

Hedge fund redemption policies are not irrelevant to risk: the rewards to liquidity risk are positive in part because redemption gates allow hedge funds to avoid asset fire sales.

Source quote, verbatim

In contrast, Teo finds that the rewards to liquidity risk are positive in part because redemption gates help hedge funds avoid asset fire sales.

From

Wulf A. Kaal, Timothy A. Krause, Hedge Funds and Systemic Risk (2016), POST-CRISIS EVIDENCE ON THE SYSTEMIC RISK OF HEDGE FUNDS, p. 15
https://ssrn.com/abstract=2748096 · source PDF

Cite as

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

Holds when

funds with redemption restrictions such as gates

Classification

mechanismsupport: evidenceddefirisk-and-incentives

Verify

The quote above is an exact substring of the source PDF, whose sha256 is 8f30260f2c1db728b45c4f3b9b7c64358cf9d3217277bc3c63a910c32f87b508. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/628d4529bedd7024...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/2748096-033.md | sha256sum