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Guide to Hedge Funds: What they are, what they do, their risks, their advantages, Second Edition

Book Description

Hedge fund managers are the new "masters of the universe." The best earn more than $1 billion a year and are so sought after that they can afford to turn investor money away. The funds they run have, to some extent, established an alternative financial system, replacing banks as lenders to risky companies, acting as providers of liquidity to markets and insurers of last resort for risks such as hurricanes, and replacing pension funds and mutual funds as the most significant investors in many companies—even in some cases buying companies outright. The revised and updated second edition of this lively guide sheds much needed light on the world of hedge funds by explaining what they are, what they do, who the main players are, the regulations affecting them, the arguments as to whether they are a force for good or bad, and what the future holds for them.

"More people have a view about hedge funds than know about them. Philip Coggan bridges the knowledge gap in this clearly written guide. Every chapter is a goldmine of information and analysis, making it easy to learn about hedge funds. No investor, no investment adviser, no trustee, no dinner-table conversationalist should express opinions on the sector until they have read this book."

—Elroy Dimson, BGI Professor of Investment Management, London Business School

"While much has been written about hedge fund strategies and their (occasionally spectacular) failures, we have not yet seen a general primer to help the investor understand the world of hedge funds. Philip Coggan presents us with exactly that—a well-written, succinct summary of a world we all need to understand better."

—Rob Arnott, Chairman of Research Affiliates and Editor Emeritus of the Financial Analysts Journal

Table of Contents

  1. Cover
  2. Title
  3. Copyright
  4. Dedication
  5. Contents
  6. Acknowledgements
  7. Introduction
  8. Chapter 1: Hedge fund taxonomy
    1. Equity funds
    2. Arbitrage funds
    3. Directional funds
    4. Event-driven
  9. Chapter 2: The players
    1. AQR Capital Management
    2. Aspect Capital
    3. Atticus Capital
    4. Barclays Global Investors
    5. Bluecrest Capital Management
    6. Brevan Howard
    7. Bridgewater Associates
    8. Caxton Associates
    9. Cerberus Capital Management
    10. Citadel
    11. CQS
    12. DE Shaw
    13. ESL Investments
    14. Farallon
    15. Fortress Group
    16. Galleon
    17. GLG Partners
    18. Goldman Sachs
    19. Highbridge Group/JPMorgan
    20. Kynikos Associates
    21. Lansdowne Partners
    22. Long-Term Capital Management
    23. Man Group
    24. Marshall Wace
    25. Moore Capital Management
    26. NewSmith Capital Partners
    27. Och-Ziff
    28. Paulson & Co
    29. Pershing Square Capital Management
    30. Renaissance Technologies
    31. SAC Capital Partners
    32. Soros Fund Management
    33. Steinhardt Partners
    34. TCI, or The Children’s Investment Fund
    35. Third Point Capital
    36. Tiger Fund
    37. Tudor Investment Corporation
    38. Winton Capital
  10. Chapter 3: Funds-of-funds
    1. How funds pick managers
    2. The outlook
    3. Structured products
    4. Multi-strategy versus funds-of-funds
  11. Chapter 4: Hedge fund regulation
    1. Approaches to supervision
    2. Hedge fund structure
    3. Prime brokers
    4. Managing their own risk
  12. Chapter 5: Hedge funds: for and against
    1. The role of hedge funds in society
    2. Hedge funds and risk
    3. Investor returns
    4. For whom the bell curve tolls
  13. Chapter 6: The future of hedge funds
    1. Liquidity
    2. Consolidation
    3. 130–30 funds
    4. UCITS III funds
    5. Permanent capital
    6. Fees
    7. Cloning
    8. Future strategies
    9. Growth
  14. References
  15. Appendices
  16. Glossary
  17. Hedge fund facts and figures
  18. Index