Financial crisis and the role of hedge funds in crisis

Hedge Funds, the fast growing and developing sector of Global markets. The capital and active gravity that provide to its investor and exceed trillion dolars have made hedge funds an important sector of financial markets. These funds have been held responsible for almost all financial headwinds, and the center for many criticism since 1990s. Thus, they have attracted attention since then. The impacts of hedge funds upon the markets have been discussed following the global financial crisis. According to some; the hedge funds are not threats because they undertake the risks, raise the liquidity, and provide true pracing while some others think that they pose a threat to markets for their not being transparent, and for their using excessive leverage. Although the content of the study is global crisis and the role of hedge funds in crisis; the role of the hedge funds on global crisis will be emphasized mostly. Therefore, it will be studied whether the hedge funds have effects on global crisis and cause instability on financial markets. Key Words: Crisis, financial crisis, hedge, hedge fund,