Swedish Hedge Fund and Mutual Fund Performance during the Financial Crisis of 2008

Abstract

The purpose of the thesis is to study the respective performance of Swedish hedge and mutual funds during the financial crisis of 2008 to see which type of funds have the best performance during a crisis of this sort. A conditional four-factor model developed by Fink, Raatz and Weigert (2014) is used for the estimation of performance. The empirical results demonstrate that both hedge funds and mutual funds underperformed during the crisis but hedge funds performed less badly than mutual funds.