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Management of Investment Funds Financial Fragility

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  • Igor Kravchuk

Abstract

The aim of the research is to characterize the main factors of in vestment funds financial fragility (concentration, interconnected ness, yield search, homogeneous strategies, procyclical activity, lo substitutability, growth of leverage, low liquidity) in the Euro area Correlation coefficients with different strategies and the stock inde EURO STOXX 50 were used to check the presence of procyclicality o market behavior and homogeneity of investment funds strategie on the example of European hedge funds. In article was proposed t calculate a financial fragility index as a simple average of a leverag multiplier, a liquidity mismatch and an indicator of the intercon nectedness of funds with other financial institutions.

Suggested Citation

  • Igor Kravchuk, 2019. "Management of Investment Funds Financial Fragility," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 15(4), pages 17-32.
    • Handle: RePEc:mje:mjejnl:v:15:y:2019:i:4:17-32
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