Demystifying Hedge Funds; PUBLICATION CANCELLED

by Jon Lukomnik

• ISBN13: 9781403942807
• ISBN10: 1403942803
• Format: Trade Book
• Publisher: Palgrave Macmillan

Summary

Demystifying Hedge Funds uses common sense to examine how hedge funds work and how they have changed the investment paradigm. The book puts hedge funds under a microscope, but avoids jargon and technospeak, choosing instead to focus on the assumptions and concepts that make hedge funds possible.

Author Biography

Jon Lukomnik is Managing Partner for Sinclair Capital and a founder of GovernanceMetrics International, a global corporate governance rating service.

Table of Contents

Stupid Hedge Fund Tricks and Other Stories from the Real World * Primer on Hedge Funds and Hedge Fund Mathematics * Definitions * Lack of Sign Constraints * Lack of Leverage constraints * Manager Styles and Benchmarks * The Business Side of Hedge Funds * P&L Issues * Terms and Conditions * Hedge Fund Metrics: Tools, Not Solutions * The Myriad of Ways To Lose Money - and Why You Should Care * The Easiest Way To Make Money * Institutional vs. Individual Mindset * Mathematical Laws * Risk Measures * Valuation and Liquidity * Issues * Source of Return/Risk Valuation Games * Crunch! Liquidity Mismatches * Optionality Leverage * Explicit Implicit Risk Management * Risk Measurement vs. Risk Management * Differences Between Trade-by-Trade and Portfolio Risk Management * Goals of Good Risk Management * Systemic vs. Specific Risk * Intentional Risk vs. Unintentional Risk * Focused Risk in Areas of Skill Opportunity * Set Five - and Only Five - Ways To Make Money * Better Information * Better Analysis * Proprietary Deal Flow * Improved Enterprise Value * Trading Skill * How, Why and Where To Use Hedge Funds. And When To Avoid Them * The Liability Side of the Equation * Beta vs. Alpha * Market Exposure is Cheap * Not All Alpha Is Created Equal * Portfolio Construction * Where Do Hedge Funds Fit * Absolute Return * Portable Alpha * Right Analysis/Wrong Instrument and Other Reasons Hedge Funds Aren't Always the Answer * Sourcing and Due Diligence * Conclusion