Hedge funds sold stocks quickly while mutual fund investors suffered larger losses during crisis

A new study of stock trading during the financial crisis of 2007 to 2009 found that hedge funds sold their stocks much more aggressively than mutual funds at the first signs of poor performance. These sell-offs occurred in response to falling stock values, the study found. Hedge fund investors withdrew almost three times as much of the money they invested as compared to mutual fund investors.

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