reduce mispricing in the market. Hedge funds invest in relatively inefficiently priced stocks, and the price efficiency of … these stocks improves after hedge funds increase their holdings. Hedge fund ownership contributes more to efficient pricing … than does ownership by other types of institutional investors. However, stocks held by hedge funds experienced large …

the contributions of other types of institutional investors, such as mutual funds or banks. However, stocks held by hedge …, and the declines were most severe in stocks held by hedge funds connected to Lehman Brothers and hedge funds using …