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Can hedge funds time global equity markets? Evidence from emerging markets

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  • Adam L. Aiken
  • Osman Kilic
  • Sean Reid

Abstract

This paper examines the ability of global hedge funds to time a particularly volatile asset class — emerging market equities. In particular, we study whether or not these funds can either time emerging markets as a whole, or time their exposures to different regions. Using both pooled and calendar‐time approaches, we generally find no evidence of overall timing ability. However, we do find some evidence of period‐specific timing ability during the financial crisis and subsequent recovery.

Suggested Citation

  • Adam L. Aiken & Osman Kilic & Sean Reid, 2016. "Can hedge funds time global equity markets? Evidence from emerging markets," Review of Financial Economics, John Wiley & Sons, vol. 29(1), pages 2-11, April.
    • Handle: RePEc:wly:revfec:v:29:y:2016:i:1:p:2-11
    DOI: 10.1016/j.rfe.2015.05.002
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    References listed on IDEAS

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