Hedge fund investing : a practical approach to understanding investor motivation, manager profits, and fund performance / Kevin R. Mirabile.

Format:

Book

Author/Creator:

Mirabile, Kevin, author.

Series:

Wiley finance series.

Wiley Finance Series

Language:

English

Subjects (All):

Hedge funds.

Investment analysis.

Physical Description:

1 online resource (367 pages) : illustrations.

Edition:

Second edition.

Place of Publication:

Hoboken, New Jersey : Wiley, 2016.

Summary:

A comprehensive guide to alternative investments and a valuable study companion for the CFA, CAIA, FRM and other professional examinations that include hedge fund investing The 2nd Edition offers new material related to portfolio financing, how funds are sold, liquid alternatives, and the challenges faced when trying to value hedge fund management companies. This edition includes updated power point slides, and a companion workbook with an updated set of end of chapter problems and a revised set of over 150 test bank questions. Hedge Fund Investing is a complete guide to alternative investments for students and professionals alike. Written to align with the CAIA curriculum, this book is much more than just an exam preparation resource-it's a fully comprehensive guide to hedge fund investing in today's market, designed to provide professionals with the deep understanding they need to operate effectively. Broad coverage under the alternative investment umbrella includes discussion about hedge funds, derivatives, investment banking, and commercial banking, with specific guidance toward trading, strategy, portfolio management, performance metrics, due diligence, and more. A full set of ancillary materials helps bring this book into the classroom, and provides rigorous reinforcement of the material presented in the text. Alternative investment expertise has become central to the asset management and institutional investment community. This book facilitates clear understanding of the intricacies of the field and guides you through the practical skills needed to successfully navigate this diverse set of asset classes. * Recognize hedge fund trends, flows, and characteristics * Examine major hedge fund strategies and how they interact * Learn the technical side of financing, settlement, and clearance * Measure fund performance and optimize contributing factors Hedge funds and other alternative investments are known for their high reward, but they also come with significant risk. The investment professional's role is to minimize these risks while maximizing reward, but the nuanced nature of these assets dramatically complicates the task. Hedge Fund Investing details every aspect to give you the deep and instinctual understanding you need to operate effectively within the alternative investment sphere.

Contents:

Intro

Series

Title page

Copyright

Dedication

Preface

Acknowledgments

About the Author

PART ONE Overview

CHAPTER 1 The Basics of Hedge Fund Investing

WHAT ARE ALTERNATIVE INVESTMENTS?

HEDGE FUND CHARACTERISTICS AND STRUCTURES

HEDGE FUNDS VERSUS MUTUAL FUNDS

SUMMARY

CHAPTER 2 Hedge Fund Strategies, Performance Measurement, and Risk

TYPES OF HEDGE FUND STRATEGIES

IMPACT OF LEVERAGE, SHORT SELLING, AND DERIVATIVES

INTRODUCTION TO PERFORMANCE AND RISK MEASUREMENT

CHAPTER 3 Who Invests in Hedge Funds and Why?

ACADEMIC RESEARCH IN SUPPORT OF HEDGE FUND INVESTING

HEDGE FUNDS AND ASSET ALLOCATION

HIGH-NET-WORTH INDIVIDUALS

FAMILY OFFICES

ENDOWMENTS

PUBLIC PENSION PLANS

SOVEREIGN WEALTH FUNDS

FUNDS OF HEDGE FUNDS (FOFS)

SEED INVESTORS

WHY DON'T INVESTORS ALLOCATE MORE TO HEDGE FUNDS?

CHAPTER 4 Industry Trends, Flows, and Characteristics

PRE-1998, WHEN NO ONE REALLY CARED

1998 TO 2002, WHEN EVERYONE TOOK NOTICE

2002 TO 2007, THE GOLDEN AGE

2008 AND 2009, THE ROOT OF ALL EVIL?

2010 TO PRESENT, SAVIOR OR FRAUD?

INDUSTRY CHARACTERISTICS

CURRENT STATE OF THE INDUSTRY

STATE OF U.S. HEDGE FUND REGULATIONS

HOW ARE FUNDS BOUGHT AND SOLD?

PART TWO Understanding the Strategies

CHAPTER 5 Global Macro Investing

ORGANIZATIONAL STRUCTURE

PORTFOLIO CHARACTERISTICS

FUND TERMS AND CONDITIONS

FLOWS AND PERFORMANCE

WHAT IS THE PROFILE OF A GLOBAL MACRO MANAGER?

MEASURING RETURNS AND EVALUATING RISK

CHAPTER 6 Equity-Oriented Styles

INVESTMENT PROCESS AND PORTFOLIO CHARACTERISTICS

STRATEGY PROFIT OR LOSS AND EXPOSURE REPORTING

WHAT IS THE PROFILE OF A LONG AND SHORT EQUITY MANAGER?.

MEASURING RETURNS AND EVALUATING RISK

CHAPTER 7 Fixed-Income-Oriented Strategies

WHAT IS THE PROFILE OF A FIXED-INCOME-ORIENTED MANAGER?

CHAPTER 8 Multistrategy Funds, Funds of Hedge Funds, and Replication Products

MULTISTRATEGY FUNDS

UNIQUE OPPORTUNITIES AND RISKS ASSOCIATED WITH MULTISTRATEGY FUNDS

WHAT IS THE PROFILE OF A MULTISTRATEGY MANAGER?

STRATEGY PERFORMANCE AND RISK METRICS MULTISTRATEGY FUNDS

FUNDS OF FUNDS

ORGANIZATIONAL STRUCTURE OF FUND OF FUNDS

UNIQUE OPPORTUNITIES AND RISK ASSOCIATED WITH FUNDS OF FUNDS

WHAT IS THE PROFILE OF A FUND OF FUNDS MANAGER?

HEDGE FUND REPLICATION STRATEGIES AND ALTERNATIVE BETA PRODUCTS

CHAPTER 9 Portfolio Finance and Secondary Market Trading

BASIC FINANCING TOOLS

IMPACT OF NETTING CASH FLOWS ON INTEREST COSTS

IMPACT OF MARGIN ON COUNTERPARTY RISK

IMPACT OF PORTFOLIO RISK MEASUREMENT ON MARGIN LEVELS

THE IMPORTANCE OF ASSET AND LIABILITY MANAGEMENT

HOW DO DEALERS FUND AND PROFIT FROM HEDGE FUND POSITIONS?

HEDGE FUNDS' EXPOSURE TO BANKS, BROKERS, AND DEALERS IN THE EVENT OF DEALER BANKRUPTCY OR INSOLVENCY (AS IN THE CASES OF REFCO OR LEHMAN BROS.)

HOW DO THE EQUITY AND FIXED-INCOME FINANCING MARKETS OPERATE?

SECONDARY TRADING IN HEDGE FUND SHARES

PART THREE Evaluating Individual Fund Risk and Reward

CHAPTER 10 Measuring Performance and Performance Persistence

UNDERSTANDING HISTORICAL RETURNS, NORMALITY, PORTFOLIO SENSITIVITY, AND DATA BIAS

MEASURING NORMALITY OF FUND PERFORMANCE DATA.

EXPOSURE TO SPECIFIC ADVERSE PRICE MOVEMENTS OR HISTORICAL SCENARIOS

ACADEMIC FINDINGS ON PERFORMANCE PERSISTENCE

CHAPTER 11 Impact of Fund Characteristics and Terms on Performance

INCENTIVES

AGENCY THEORY

MANAGER DISCRETION

CHAPTER 12 Performing Due Diligence on Specific Managers and Funds

BE PREPARED

LEARN FROM THE PAST-FROM BOTH SUCCESSES AND FAILURES

IF IT LOOKS TOO GOOD TO BE TRUE, IT PROBABLY IS

REMEMBER, IT'S STILL ABOUT RETURNS!

COMMON ELEMENTS OF THE DUE DILIGENCE PROCESS

FUND OPERATING ENVIRONMENT, DOCUMENTATION, FINANCIALS, AND SERVICE PROVIDERS

BUSINESS MODEL RISK

FRAUD RISK

CHAPTER 13 Evaluating the Roles of Service Providers

WHO ARE A FUND'S CRITICAL SERVICE PROVIDERS?

FUND ADMINISTRATOR

PRIME BROKERS

AUDITORS

LEGAL COUNSEL

TECHNOLOGY ENVIRONMENT AND SERVICE PROVIDERS

ADDITIONAL CONSIDERATIONS

CHAPTER 14 Observations and Outlook

HEDGE FUND INDUSTRY CHALLENGES

2015 INDUSTRY SURVEYS AND OUTLOOK

WHAT IS THE THEORETICAL VALUATION OF THE HEDGE FUND INDUSTRY TODAY?

Glossary

References and Additional Reading

ACADEMIC ARTICLES AND BOOKS

COMPANY REFERENCES, WEBSITES, AND INDUSTRY WHITE PAPERS

Index

EULA.

Notes:

Includes bibliographical references and index.

Description based on online resource; title from PDF title page (ebrary, viewed January 13, 2016).

ISBN:

9781119210375

1119210372

9781119210399

1119210399

OCLC:

935252014