basis. Finally, when global financial risk is on the rise, US mutual fund managers repatriate their investments towards US …

This article analyzes the effect of liquidity risk on the performance of various hedge fund portfolio strategies …. Similarly to Avramov et al. (2007), we find that, before accounting for the effect of liquidity risk, hedge fund portfolios that … dramatically for six out of ten hedge fund style-based portfolios once we account for liquidity risk. Hence, for most hedge fund …

. The second paper sheds light on how traders allocate risk of stock portfolios in a trading day. Traders decrease risk … before the market close. They do so by selling stocks with the highest marginal risk and buying stocks that decrease the risk … of their portfolio the most. As our measure of portfolio risk relates to the one that clearing houses use for the margin …