A Study Of Market Function Of Hedge Fund

A series of financial crisis that broken in the 1990's and impacted the world economy greatly caught a lot of sights on Hedge Fund, and the world took it as tiger and flood. We should know not only the phenomenon and result, but also the reason, so that we can valuate the influence and decide our policy. Based on a specific analysis on the strategy and operation of Hedge Fund, this text try to give a just and objective analysis of it from the perspective of micro market function and macro market function, and try to put forward reasonable suggestions of its future development on the basis of analysis on the necessity and possibility of development. The summarizing part gives the general idea and deficiencies of the text.The part of introduction tells the background and aim of this paper, and summarizes the related theories and researches on Hedge Fund. The first part summarizes the definition development and assorting of Hedge fund. The second part of the paper summarizes the strategies used by Hedge Fund and tells the operating process and its risk& interest specifically, taking the famous European Exchange Rate Mechanism crisis in 1992, the Hong Kong financial crisis and the LTCM crisis in 1998 as examples. On the basis of the second part, the third part analyzes the specific characters of Hedge Fund from the perspective of micro function and macro function, and embodies the advantages and weakness to investors and market. The fourth part analyzes the future trend of Hedge Fund and the possibility of its appearance in our country, and tries to give proper suggestions on every aspects of future development.Contrasting to the emphasis on the harm and the supervision of Hedge Fund in former papers, this paper formulates not only the importance and possibility of supervision, but also the importance and possibility of development of Hedge Fund. On the other hand, contrasting to the composition form of analyzing the result, this text emphasizes the reason, strategy and operation more, and a lot of specific datum are used for deeper illumination. These two points can be thought as the innovation and highlight of the text.