Getting Started in Hedge Funds From Launching a Hedge Fund to New Regulation, the Use of Leverage, and Top Manager Profiles

by Strachman, Daniel A.

• ISBN13: 9780470630259
• ISBN10: 0470630256
• Edition: 3rd
• Format: Paperback
• Copyright: 2010-12-07
• Publisher: Wiley

Summary

The book on hedge fund basics, completely updated to reflect today's post-crisis industryThe hedge fund industry has been reeling in the wake of recent Ponzi schemes and insider trading scandals as well as the loss of billions of dollars in assets under management due to fund closures. Getting Started in Hedge Funds, Third Edition focuses on the current state of the industry; how hedge funds did or did not survive the subprime and subsequent credit crisis; and, what the future holds for investors. Getting Started in Hedge Funds, Third Edition also provides readers with a brief overview of the industry's history, and describes the inner-workings of these complex investment vehicles, including how to start a hedge fund, and what new regulations means for managers and investors. Profiles 10 highly successful hedge fund managers Addresses the Madoff scandal, as well as other lesser known Ponzi schemes, and analyzes the ripple effect felt throughout the industry as a result of these and other scandals Despite the performance of some of these funds in the last few years, hedge funds are here to stay. In this Third Edition, Getting Started in Hedge Funds, Strachman provides an updated "how-to" guide for investors interested in hedge funds in this era of "new normal."

Author Biography

Daniel A. Strachman is the director of HEDGEAnswers.com, an online community for understanding hedge funds and investment strategies. A hedge fund industry veteran, he has contributed articles on investment management and strategies to publications such as the New York Post and the Financial Times, and blogs regularly at HEDGEAnswers.com. He is the author of both the first and second editions of Getting Started in Hedge Funds, as well as The Long and Short of Hedge Funds and The Fundamentals of Hedge Fund Management, all published by Wiley. For more information, visit danielstrachman.com.

Table of Contents

Acknowledgments	p. viii
Introduction: Why Hedge Funds Now and Forever?	p. xi
Hedge Fund Basics	p. 1
The Near Collapse of Long-Term Capital Management	p. 4
The Credit Crisis and Hedge Funds	p. 13
A Brief History of Hedge Funds	p. 17
The Current State of the Hedge Fund Industry	p. 21
Alfred Winslow Jones-The Original Hedge Fund Manager	p. 24
How Hedge Funds Operate	p. 33
Starting a Hedge Fund	p. 36
Hedge Fund Regulations and Structures	p. 53
How Hedge Funds Use Leverage	p. 62
Patriarchs of the Hedge Fund World	p. 62
Hedge Funds Take All the Heat	p. 66
George Soros-The World's Greatest Investor	p. 68
The Managers	p. 71
Guy Wyser-Pratte-Wyser-Pratte	p. 74
Bill Michaelcheck-Mariner Investment Group	p. 80
Nancy Havens-Havens Advisors LLC	p. 85
Steve Cohen-SAC Capital	p. 89
Hedge Fund Investing	p. 95
The Role of an investment Adviser	p. 98
An Institutional Investor	p. 99
Third-Party Marketers	p. 103
An Individual Investor	p. 105
A Consulting Firm	p. 108
A Manager of Managers	p. 111
Conclusion	p. 117
Hedge Fund Strategies	p. 121
Example of Material Included in an Onshore Document	p. 125
Overview	p. 125
Important General Considerations	p. 128
Summary of Offering and Partnership Terms	p. 130
Management	p. 146
Example of Material Included in a Cayman-Based Fund for Tax-Exempt Investors	p. 149
Establishing an Offshore Fund Domiciled in the Cayman Islands	p. 149
Summary of Key Disclosures for Cayman Islands Offering Document	p. 154
Glossary	p. 161
Notes	p. 171
About the Author	p. 175
Index	p. 177
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