2007-01-14 15:09:48 · 3 answers · asked by Antoniob 1 in Business & Finance ➔ Investing
i understand that private equity, to a much larger extent than hedge funds, add value to a firm. whereas hedge funds don't seem to get involved in running/improving the company/asset. rather, they are "hedging" bets, which makes hedge funds look more like high street punters rather than actual people concerned about improving the market place.
2007-01-14 16:33:40 · update #1
Yes --they provide liquidity and make the market more efficient.
2007-01-14 15:29:46 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋
They sure do, here are a few reasons:
1.) add liquidity to the market.
2.) pressure companies to alter their strategy, improve execution, etc.
2007-01-15 00:21:32 · answer #2 · answered by surge 2 · 0⤊ 0⤋
Just the opposite. When they go broke, they have to be bailed out, like LLTC or Amaranth this year.
2007-01-15 00:18:14 · answer #3 · answered by Yardbird 5 · 0⤊ 0⤋