Web cast Dirk Bezemer - Are hedge funds a blessing or a threat?

“The bad reputation of hedge funds is not fair, it doesn’t reflect reality,” according to Dutch finance minister Bos this week in the Volkskrant newspaper. His conclusion was based on research conducted by the Erasmus University Rotterdam.

The finance ministry began this summer an investigation into how active hedge funds and private equity groups are in the Netherlands. Hedge funds have become a controversial issue in the Netherlands following their efforts to force several Dutch companies to split up. ABN Amro was sold and split up due to the Children’s Investment hedge fund and newspaper group PCM was bought and sold again by private equity group Apax.

Dr. Dirk Bezemer of the Faculty of Economics and Business doesn’t agree with minister Bos. In the web cast above he first explains what hedge funds and privaty equity funds are and why they have become so important in the Netherlands. Then the advantages and disadvantages of hedge funds are discussed. According to Bezemer the benefits of hedge funds are mainly for the involved parties. The costs for society as a whole should be regarded as well.

In Dr. Dirk Bezemer’s opinion there should be a debate on the role of the government in the regulation of hedge funds.