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Hedge funds, which control more than $2 trillion in assets, and when one includes leverage, substantially more than that, are an institution that has helped produce massive increases in trading volumes and financial transactions in the last decade.

Further, together with wealth management investment funds, private equity funds, and of course investment banks and brokers, these institutions form the bulk of the market's "shorter-term players" - - organizations that are likely to have an investment horizon that is shorter than the typical person's. They're also more-likely to use aggressive investment techniques and invest in high-risk instruments.

Few deny that the above institutions, particularly hedge funds, with their buying power and volumes, have increased market liquidity.

However, lately a growing chorus is beginning to question the ultimate impact of hedge funds, and comparable players. Namely, they're asking if hedge funds and their companions are distorting prices of commodities, stocks, and other investments.

Continue reading Are hedge funds distorting the price of oil?

Are hedge funds distorting the price of oil? originally appeared on BloggingStocks on Thu, 29 Nov 2007 18:34:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Ali Al-Naimibrokershedge fundsinvestinginvestment banksinvestment management fundsIranoiloil consumptionoil demandoil pricesoil productionoil supplyOPECprivate equityreturn on investmentSaudi ArabiaThu, 29 Nov 2007 18:34:00 EST