The Little Book of Hedge Funds is essential reading for anyone seeking the tools and information needed to invest in this lucrative yet mysterious world. Authored by wealth management expert Anthony Scaramucci, and providing a comprehensive overview of this shadowy corner of high finance, the book is written in a straightforward and entertaining style. This book written to provide novice investors, experienced financiers, and financial institutions with the tools and information needed to invest in hedge funds, this book is a must read for anyone with outstanding questions about this key part of the twenty-first century economy.
FOR MUCH OF THEIR history, hedge funds have been viewed as exclusive, intentionally vague, high-risk investments that were only accessible to the überelite. Often referred to as “Wall Street’s last bastions of secrecy, mystery, exclusivity, and privilege,” they have generally been resented, misunderstood, and vilified for causing market turbulence and creating legions of wealthy people who seemingly have “more money than God.” And yet, most do exactly what they say: They provide superior returns with less volatility. As such, investors continue to pour money into these alternative investments, with assets increasing from $38.9 billion in 1990 to$1.77 trillion in 2007 to $2.04 trillion in the third quarter of 2011.1 With posted gains of 19.98 percent and 10.4 percent in 2009 and 2010, respectively, an increasing number of individuals and institutions are eager to gain insight and access into this secret society. However, many mysterious hedge fund managers often shy away from unveiling their profitable secrets.
Isn’t it time that someone unravel the secret world of hedge funds? Isn’t it time to provide intellectually curious people with a comprehensive overview of the industry without clouding it with jargon, negativity, and dry numbers? Isn’t it time to help eager and cautious investors reap impressive gains while reducing overall market risk? Isn’t it time to explain to the masses how hedge funds impact their pocketbooks even if they don’t directly invest in this alternative investment vehicle?
Enter The Little Book of Hedge Funds. I’m your host. Anthony Scaramucci. Well, not actually your host—more like your trusted resident advisor. In 2005, I cofounded SkyBridge Capital Management, an alternative asset management firm that is now running approximately $5.7 billion in total assets under management by investing in over 35 different hedge fund managers. As an alternative asset manager and founder of the SkyBridge Alternatives (SALT) Conference, which is one the premiere conferences in the industry, I have been privy to cloaked conversations among some of the world’s most successful hedge fund managers. I have listened carefully to their views on the industry, observed how they have ironed out market inefficiencies through their dynamic use of alternative investment strategies, and studied the ancillary literature written on the subject. And, as a managing partner of SkyBridge Capital, I witnessed my experienced staff thoroughly and thematically evaluate the quantitative and qualitative factors that go into allocating capital and selecting a hedge fund manager across all industry segments. And now, in this Little Book of Hedge Funds, I will pass this amassed knowledge onto you.
Consider this Little Book to be your personal guide to the hedge fund industry. We’re going to provide you with a comprehensive overview of this secretive world, while exploring its impact on the overall market and global economy. We’re going to explain the history and evolution of hedge funds and how they operate. Along the way, we’re going to hear valuable insight from hedge fund luminaries and investing titans who have transformed the financial industry. And, we’re going to do it all by using plain English—no jargon here.
After reading this Little Book, you will no longer have to shy away from conversations about accredited investors who allocate capital to hedge fund managers who take two-and-twenty by exploiting market inefficiencies through investment strategies (short, hedge, leverage—oh my!) that minimize risk while generating absolute returns . . . all in the quest for alpha. (Don’t worry, you’ll learn what all of this means in this book—just keep reading.)
- What is a Hedge Fund?
- The Parlor Cars of the Gravy Train
- Accessing the Inaccessible
- Heads We Win; Tails you Lose
- The Alpha Game
- Ironing Out Inefficiencies
- A Balancing Act
- If you Can’t Beat ’Em, Join ’Em
- The Men Behind the Curtains
- From Wall Street to Park Avenue
The Little Book of Hedge Funds: What You Need to Know about Hedge Funds But the Managers Won't Tell You By Anthony Scaramucci pdf