Getting Started in Hedge Funds: From Launching a Hedge Fund to New Regulation, the Use of Leverage, and Top Manager Profiles
Getting Started in Hedge Funds, focuses on the current state of the industry; how hedge funds did or did not survive the subprime and subsequent credit crisis; and, what the future holds for investors.
The purpose of this book is to provide an introduction that explores these types of operations. I purposely did not examine managers and funds that are covered in the popular press. Instead I spent time getting to know managers who are known on Wall Street but not outside it. They manage portfolios ranging in size from $2 million to over $2 billion. In some cases they operate by themselves out of a small office with one assistant. Others have multiple offices around the globe with staffs of a hundred or more.
The idea of the book is to provide you with a clearer view at how these people operate in the various markets that they trade. Because each employs different trading methodologies and investment philosophies, this book provides you with a unique look at the business of managing money. It will, I hope, give you the insight you need to find alternative means to achieve your investment goals. While all the managers are different, they all have two things in common: They use some piece of the same business model and each is an entrepreneur.
To understand how hedge funds operate, you need to understand the styles and strategies their managers use. While most conventional money managers own securities in hopes of price appreciation, many hedge fund managers employ alternative strategies that do not rely on the market’s going up: short selling, risk arbitrage, and the trading of derivatives. Most hedge funds employ strategies that allow them to hedge against risk to ensure that no matter which way the market moves, they are protected against loss.
- Hedge Fund Basics
- How Hedge Funds Operate
- The Managers
- Hedge Fund Investing