Skip to main content

The Fundamentals of Hedge Fund Management: How to Successfully Launch and Operate a Hedge Fund, 2nd Edition

The Fundamentals of Hedge Fund Management: How to Successfully Launch and Operate a Hedge Fund, 2nd Edition

Daniel A. Strachman

ISBN: 978-1-118-23923-0

May 2012

304 pages



Updated edition of the book that gives investors, advisors, and managers the tools they need to launch and maintain a hedge fund in today's economy

The hedge fund industry has gone through dramatic changes in recent years. Investors of all types continue to want to place their assets into these investment vehicles even in the wake of the credit crisis, massive frauds, and insider trading scandals. Once the forbidden fruit of Wall Street, hedge funds are now considered "must have" investments in any diversified portfolio. Now in its second edition, The Fundamentals of Hedge Fund Management is revised and updated to address how the credit crisis, legislation, fraud, technology, investor demand, global markets, and the economic landscape have affected the industry.

Providing readers with a detailed and in-depth analysis of the world of hedge funds, the people working in it, and a look at where it's headed, the book is a timely and indispensable reference and research tool for helping professional money managers, traders, and others to launch and grow successful hedge fund businesses.

  • Addresses how the credit crisis and its fallout has affected the hedge fund industry and what this means for the future
  • Provides the essential information needed to launch and maintain a successful hedge fund in the new global economy
  • Walks the reader through running a hedge fund, helping you to gain success over years, not just months

An essential resource for anyone looking to invest in these much-discussed investment products, The Fundamentals of Hedge Fund Management, Second Edition is now fully revised and updated.

Preface xi

Acknowledgments xiii

CHAPTER 1 The Hedge Fund Industry 1

CHAPTER 2 The Service Providers 23

CHAPTER 3 Hedge Fund Structures 41

CHAPTER 4 Hedge Fund Accounting 59

CHAPTER 5 ERISA, UBTI, and Offshore Funds 77

CHAPTER 6 Marketing and Capital Raising 91

CHAPTER 7 Why the Back Office Matters 113

CHAPTER 8 The Launch 127

CHAPTER 9 Perception versus Reality 141

APPENDIX A Hedge Fund Litigation 153

APPENDIX B Examples of Hedge Fund Structures 189

Resource Guide 199

Notes 205

Glossary 209

Bibliography 213

About the Author 217

Index 219