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The Fundamentals of Hedge Fund Management, 2nd Edition

Book Description

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.

Table of Contents

  1. Cover
  2. Series
  3. Title Page
  4. Copyright
  5. Dedication
  6. Epigraph
  7. Preface
  8. Acknowledgments
  9. Chapter 1: The Hedge Fund Industry
    1. UNDERSTANDING HEDGE FUNDS
    2. HEDGE FUND HISTORY
    3. WHAT'S NEW
    4. MAKING IT ON YOUR OWN
    5. DELIVERING ON YOUR PROMISE TO INVESTORS
  10. Chapter 2: The Service Providers
    1. TYPES OF PROVIDERS
    2. LAWYERS
    3. PRIME BROKERS
    4. ACCOUNTANTS
    5. ADMINISTRATORS
    6. MARKETING AND MARKETERS
  11. Chapter 3: Hedge Fund Structures
    1. GETTING STARTED
    2. THE SETUP
    3. ANTI-MONEY LAUNDERING AND KNOW YOUR CUSTOMER ISSUES
  12. Chapter 4: Hedge Fund Accounting
    1. PRICING
    2. THE FINANCIAL INDUSTRY REGULATORY AUTHORITY RULES
    3. THE AUDIT
    4. TAX ISSUES
    5. ADMINISTRATORS
    6. THE TEN COMMANDMENTS
    7. ADMINISTRATOR DUE DILIGENCE
  13. Chapter 5: ERISA, UBTI, and Offshore Funds
    1. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974
    2. OFFSHORE FUNDS
  14. Chapter 6: Marketing and Capital Raising
    1. MARKETING 101
    2. THE LAZY INVESTOR
    3. CHECKING THE BOX
    4. JUST DO IT
    5. GETTING TO YES
    6. THE KISS PRINCIPLE
    7. BEING AN ENTREPRENEUR
    8. THE OLD DAYS
    9. THE VALUE OF SERVICE PROVIDERS
    10. HUNGER IS KEY
  15. Chapter 7: Why the Back Office Matters
    1. USING THE RIGHT TOOLS
    2. THE BEGINNING
    3. THE OFFICE
    4. INSURANCE
    5. HIRING PEOPLE
  16. Chapter 8: The Launch
    1. THE PLAN
    2. PRESSURES FROM TWO SIDES
    3. ROLE DEFINITION
    4. GETTING GOING
    5. STUFF TO DO
    6. MANAGER PLATFORMS
  17. Chapter 9: Perception versus Reality
    1. DAY 1
    2. EGOS MATTER
    3. THE ACTION PLAN
  18. Appendix A: The Hedge Fund Industry
    1. INTRODUCTION
    2. OVERVIEW OF HEDGE FUND BLOW-UPS
    3. COMMON THEMES IN LITIGATION
    4. COMMON CLAIMS BY INVESTORS
    5. COMMON HURDLES TO COMMON CLAIMS BY INVESTORS
    6. LIABILITY AND COLLECTABILITY
    7. INVESTOR CLAIMS VERSUS RECEIVER/TRUSTEE CLAIMS
    8. FORUM AND JURISDICTION
    9. ARBITRATION
    10. GROUP VERSUS CLASS
    11. CLAWBACK CLAIMS
    12. MARGIN CALL LITIGATION
    13. TRENDS
    14. HOW NOT TO BECOME A VICTIM
    15. AVOIDING BECOMING A DEFENDANT IN A HEDGE FUND FRAUD CASE
    16. CONCLUSION
  19. Appendix B: Examples of Hedge Fund Structures
  20. Resource Guide
    1. PRIME BROKERS
    2. LAWYERS
    3. ADMINISTRATORS
    4. ACCOUNTANTS
    5. INSURANCE
    6. OPERATIONS AND COMPLIANCE CONSULTANTS
  21. Glossary
    1. GLOSSARY SOURCES
  22. Bibliography
  23. About the Author
  24. Index