Hedge funds were riding the technology bubble instead of exerting a price correcting force.
Market Inefficiency
Hedge Funds and the Technology Bubble”. The Journal of Finance 59 (2004): , 59, 2013-2040. Print.Abstract
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Predatory Trading”. The Journal of Finance 60 (2005): , 60, 1825-1863. Print.Abstract
. “When a large trader has to liquidate, "predators" also sell and withdraw liquidity. This leads to price overshooting and systemic risk.
Information Leakage and Market Efficiency”. Review of Financial Studies 18 (2005): , 18, 417-457. Print.Abstract
. “Information leakage lowers market efficiency in the long run.
Asset pricing under asymmetric information: bubbles, crashes, technical analysis, and herding. Oxford University Press, 2001. Print.Abstract
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Synchronization risk and delayed arbitrage”. Journal of Financial Economics 66 (2002): , 66, 341-360. Print.Abstract
. “Models the Wile E. Coyote effect, since synchronization risk leads to market timing by arbitrageurs and delays arbitrage.