COVID-19 and hedge fund equity ownership

Samarbakhsh L., Singh A.

International Review of Finance, cilt.22, sa.2, ss.356-364, 2022 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 22 Sayı: 2
  • Basım Tarihi: 2022
  • Doi Numarası: 10.1111/irfi.12370
  • Dergi Adı: International Review of Finance
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, ABI/INFORM, Business Source Elite, Business Source Premier, EconLit, vLex
  • Sayfa Sayıları: ss.356-364
  • Anahtar Kelimeler: COVID-19, equity ownership, hedge funds
  • TED Üniversitesi Adresli: Hayır

Özet

© 2021 International Review of Finance Ltd.This study investigates hedge funds equity ownership in light of the COVID-19 pandemic. Using the merged dataset of Lipper TASS hedge funds and the corresponding 13F filings, we find that with the start of the pandemic, hedge funds increased their equity ownership toward firms with less financial constraints, such as larger firms, firms with lower leverage, and more profitability. Moreover, hedge funds increased their ownership in firms which had higher overall risk (political and non-political), and lower overall sentiment. Hedge funds also care about firms' exposure/sensitivity toward different political issues such as health care, technology & infrastructure, and security & defense. This suggests that hedge funds seek equity ownership in riskier stocks as a result of pandemic uncertainties.