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Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance, 2nd Edition

Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance, 2nd Edition

Kevin R. Mirabile

ISBN: 978-1-119-21037-5

Dec 2015

368 pages


A comprehensive guide to alternative investments and a valuable study companion for the CFA, CAIA, FRM and other professional examinations that include hedge fund investing

The 2nd Edition offers new material related to portfolio financing, how funds are sold, liquid alternatives, and the challenges faced when trying to value hedge fund management companies. This edition includes updated power point slides, and a companion workbook with an updated set of end of chapter problems and a revised set of over 150 test bank questions.

Hedge Fund Investing is a complete guide to alternative investments for students and professionals alike. Written to align with the CAIA curriculum, this book is much more than just an exam preparation resource—it's a fully comprehensive guide to hedge fund investing in today's market, designed to provide professionals with the deep understanding they need to operate effectively. Broad coverage under the alternative investment umbrella includes discussion about hedge funds, derivatives, investment banking, and commercial banking, with specific guidance toward trading, strategy, portfolio management, performance metrics, due diligence, and more. A full set of ancillary materials helps bring this book into the classroom, and provides rigorous reinforcement of the material presented in the text.

Alternative investment expertise has become central to the asset management and institutional investment community. This book facilitates clear understanding of the intricacies of the field and guides you through the practical skills needed to successfully navigate this diverse set of asset classes.

  • Recognize hedge fund trends, flows, and characteristics
  • Examine major hedge fund strategies and how they interact
  • Learn the technical side of financing, settlement, and clearance
  • Measure fund performance and optimize contributing factors

Hedge funds and other alternative investments are known for their high reward, but they also come with significant risk. The investment professional's role is to minimize these risks while maximizing reward, but the nuanced nature of these assets dramatically complicates the task. Hedge Fund Investing details every aspect to give you the deep and instinctual understanding you need to operate effectively within the alternative investment sphere.

Related Resources

Preface ix

Acknowledgments xiii

About the Author xv

PART ONE Overview

CHAPTER 1 The Basics of Hedge Fund Investing 3

CHAPTER 2 Hedge Fund Strategies, Performance Measurement, and Risk 21

CHAPTER 3 Who Invests in Hedge Funds and Why? 39

CHAPTER 4 Industry Trends, Flows, and Characteristics 65

PART TWO Understanding the Strategies

CHAPTER 5 Global Macro Investing 87

CHAPTER 6 Equity-Oriented Styles 109

CHAPTER 7 Fixed-Income–Oriented Strategies 143

CHAPTER 8 Multistrategy Funds, Funds of Hedge Funds, and Replication Products 173

CHAPTER 9 Portfolio Financing and Secondary Market Trading 191

PART THREE Evaluating Individual Fund Risk and Reward

CHAPTER 10 Measuring Performance and Performance Persistence 213

CHAPTER 11 Impact of Fund Characteristics and Terms on Performance 233

CHAPTER 12 Performing Due Diligence on Specifi c Managers and Funds 247

CHAPTER 13 Evaluating the Roles of Service Providers 271

CHAPTER 14 Observations and Outlook 299

Glossary 309

References and Additional Reading 319

Index 335