The Little Book of Hedge Funds

by Scaramucci, Anthony

• ISBN13: 9781118099674
• ISBN10: 1118099672
• Edition: 1st
• Format: Hardcover
• Copyright: 2012-05-01
• Publisher: Wiley

Summary

The future of hedge funds lies in their ability to provide greater transparency and access so as to win the confidence of existing investors who are searching for clarification on the real risk and returns of hedge funds, and attract new investors who are cautious of this investing in this opaque vehicle because they do not fully understand how they work. The Little Book of Hedge Funds offers such timely insights and explains why all investors need to be aware of their activities. Filled with introspective commentary, applicable advice, and engaging anecdotes, this easy-to-read book will provide novice investors, experienced financiers and financial institutions with the tools and information needed to invest in the lucrative, mysterious world of hedge funds. The book will: Explain how hedge funds have grown in both size and importance in the investment community and why individual investors need to be aware of their activities Demystify hedge fund myths, by analyzing the infamous 2 and 20 performance fee, addressing claims that there is more risk in investing in hedge funds than other asset classes, and introducing hedge fund products that "mutualize" the business and open up the hedge fund world to everyday investors Explain a variety of financial instruments - including leverage, short selling and hedging - that hedge funds use to reduce risk, enhance returns and minimize the correlation with equity and bond markets. Evaluate a variety of hedge fund investing strategies, highlighting their strengths and weaknesses, so that readers can use them to enhance their existing portfolios and generate positive returns in bull and bear markets

Author Biography

Anthony Scaramucci is the Founder and Managing Partner of SkyBridge Capital, a global alternative investment and advisory firm. The firm has $5.8 billion in assets under management or advisement as of January 31, 2012. He was the cofounder of Oscar Capital Management, which was sold to Neuberger Berman, LLC in 2001 after building a managed account business and four hedge funds having in aggregate more than $800 million of assets. Upon Neuberger Berman's sale to Lehman Brothers in 2003, he served as a Managing Director in their Investment Management Division. From 1989 to 1996, Mr. Scaramucci worked at Goldman Sachs & Co., where he was appointed a Vice President in Private Wealth Management in 1993.

Mr. Scaramucci is a recipient of the Ernst & Young Entrepreneur Of The Year 2011 New York Award in the Financial Services category and a board member of Warrior Gateway, The Lymphoma Foundation, and The Brain Tumor Foundation. He is also on the Board of Overseers for the School of Arts and Sciences at Tufts University and a member of the NYC Financial Services Advisory Committee and BENS (Business Executives for National Security). Mr. Scaramucci is the author of Goodbye Gordon Gekko: How to Find Your Fortune Without Losing Your Soul and a regular CNBC contributor.

Table of Contents

Foreword	p. xi
Introduction: Anatomy of a Hedge Fund: The Password Is…	p. xv
What Is a Hedge Fund? The Traditional Long-Only Portfolio versus the Alternative Hedge Fund Portfolio	p. 1
The Parlor Cars of the Gravy Train: The Long and the Short of It	p. 29
Accessing the Inaccessible: From the Elite to Main Street	p. 51
Heads We Win; Tails You Lose: Eating Your Own Cooking while Enduring Symmetrical Glories and Punishments	p. 67
The Alpha Game: In Search of El Dorado	p. 81
Ironing Out Inefficiencies: Exploiting the Efficient Market Theory	p. 97
A Balancing Act: Outperforming the Market while Taking Less Risk	p. 117
If You Can't Beat 'Em, Join 'Em: Hedge Fund Manager Selection and Due Diligence	p. 143
The Men Behind the Curtains: Fund of Hedge Funds	p. 169
From Wall Street to Park Avenue: Setting Up Shop at the Hedge Fund Hotel	p. 193
Conclusion: The Shape of Things to Come	p. 215
Appendix: Due Diligence Questionnaire	p. 223
Notes	p. 229
Acknowledgments	p. 233
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