{
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 "@type": "DefinedTerm",
 "@id": "https://wulfkaal.github.io/entities/hedging",
 "identifier": "kaal:entity:hedging",
 "name": "Hedging",
 "termCode": "hedging",
 "inDefinedTermSet": {
  "@id": "https://wulfkaal.github.io/entities/index.json"
 },
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
 "dateModified": "2026-07-29",
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 "sha256": "dce17116d2d19331c9489ffd537d7459a922fa4077675dc3dc952ca96e328e29",
 "additionalProperty": [
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   "value": 5
  },
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   "value": 5
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   "name": "year_span",
   "value": [
    "2009",
    "2021"
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  },
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 "subjectOf": [
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1428387-029",
   "identifier": "kaal:claim:1428387-029",
   "text": "Limiting the use of hard-to-value assets and complex financial products is very unlikely to have positive effects, because the implicit inhibition of financial innovation would probably limit investors' use of hedging products and interfere with economic expansion.",
   "abstract": "assets. It is very unlikely that limiting the use of financial instruments will have positive effects. The implicit inhibition of financial innovation would probably limit investors' use of hedging products and interfere with economic expansion.232",
   "citation": "Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387",
   "datePublished": "2009",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "where regulators respond to systemic risk by restricting instrument use"
   ],
   "source_pdf_sha256": "6aa3a280dc6750723be2389f3af2aabf3a16c4ce20e49fcdaddd7f2ea95a67aa",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2715083-035",
   "identifier": "kaal:claim:2715083-035",
   "text": "Amendments to Regulation SHO may deny mutual fund advisers certain hedging techniques, making it less likely that mutual funds can attract retail investors who are looking for alternative investment exposure.",
   "abstract": "Investment advisers to mutual funds may not be able to use certain hedging techniques after the amendment of Regulation SHO, making it less likely for investment advisers running mutual funds to attract retail investors who are seeking alternative investment opportunities.",
   "citation": "Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083",
   "datePublished": "2016",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "stocks subject to significant downward price pressure under amended Regulation SHO"
   ],
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   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2998033-024",
   "identifier": "kaal:claim:2998033-024",
   "text": "Even though crypto investments can be as volatile as or more volatile than traditional investments, digital currencies may still serve as a hedge against traditional investments because they are not tied to equity market movements.",
   "abstract": "Although crypto investments can to be just as and more volatile than traditional investments, digital currencies might be used to hedge against traditional investments.",
   "citation": "Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033",
   "datePublished": "2017",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "holds to the extent crypto returns are uncorrelated with traditional stock and equity markets"
   ],
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   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3409548-029",
   "identifier": "kaal:claim:3409548-029",
   "text": "Digital currencies can serve as a hedge against traditional investments even though crypto investments can be as volatile as or more volatile than traditional ones, because they are not tied to the vicissitudes of the equity markets.",
   "abstract": "Although crypto investments can be just as and more volatile than traditional investments, digital currencies might be used to hedge against traditional investments.",
   "citation": "Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548",
   "datePublished": "2019",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "portfolios seeking diversification away from traditional equity markets"
   ],
   "source_pdf_sha256": "74227ab2656b06bfe4a29c942fc2ba26df9f476917e0a9f85ec038b8c3402c40",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3782205-033",
   "identifier": "kaal:claim:3782205-033",
   "text": "Every type of economic action becomes more efficient when decisions are hedged, because hedging lets participants confidently change investments and keeps the market liquid, and lending and insurance therefore require someone to underwrite the risk.",
   "abstract": "Every type of economic action is made more efficient when decisions are hedged, so we can confidently change our investments, keeping the market liquid. Lending and insurance are essential catalysts for business, that require someone to underwrite the risk.",
   "citation": "Craig Calcaterra, Wulf A. Kaal, Eight Institutions for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782205",
   "datePublished": "2021",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [],
   "source_pdf_sha256": "5ba52c63e81019b6867fb29c4a50821ff574e510d79b31b8ce9f4c726a0ebc71",
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  }
 ],
 "description": "5 claims in the published works of Wulf A. Kaal carry the concept tag 'hedging'. Derived node: a roster, not an adjudicated definition."
}