{"product_id":"hedge-fund-of-funds-investing-isbn-9781576601242","title":"Hedge Fund of Funds Investing","description":"Hedge funds have rightly gained the attention of private and institutional investors in recent years, proving themselves as useful portfolio diversifiers and preservers of wealth while greatly dispelling their reputation as an \"unsafe\" investment. Yet investors attempting to navigate in the field of hedge funds face significant challenges: the large number of funds, the diversity of strategies used, the range of financial instruments traded, and the various formats for investing.\u003cbr\u003e \u003cbr\u003e Pooling multiple hedge funds together into one vehicle, the fund of funds provides a ready solution, combining professional management expertise with asset allocation. In this book--the first of its kind--industry expert Joseph Nicholas shows investors how these funds operate, the benefits and risks, and the criteria and due diligence to utilize when selecting funds. Nicholas provides an in-depth analysis of historical fund performance and offers unique insight into the industry and trends that may affect its evolution.\u003cbr\u003e \u003cbr\u003e Clear, insightful, and illustrated with numerous charts and graphs, \u003ci\u003eHedge Fund of Funds Investing\u003c\/i\u003e is an essential resource for serious investors.  Introduction.\u003cbr\u003e \u003cbr\u003e \u003cb\u003ePart 1\u003c\/b\u003e \u003cb\u003eThe Fund of Funds Industry.\u003cbr\u003e \u003c\/b\u003e1 Fund of Funds in the Hedge Fund Industry.\u003cbr\u003e Hedge Fund Investment Options.\u003cbr\u003e Direct Investment.\u003cbr\u003e Customized Portfolio.\u003cbr\u003e Index Fund.\u003cbr\u003e Fund of Funds Investment.\u003cbr\u003e Growth of Funds of Funds.\u003cbr\u003e Hedge Fund Industry Characteristics and Trends.\u003cbr\u003e Hedge Fund Investment Structure.\u003cbr\u003e Legal Structure.\u003cbr\u003e Numbers of Investors and Minimum Investment Size.\u003cbr\u003e Reporting and Disclosure.\u003cbr\u003e Liquidity.\u003cbr\u003e Lockup.\u003cbr\u003e Summary.\u003cbr\u003e   \u003cbr\u003e 2 Hedge Fund Investment Strategies.\u003cbr\u003e Convertible Arbitrage.\u003cbr\u003e Distressed Securities.\u003cbr\u003e Emerging Markets.\u003cbr\u003e Equity Hedge.\u003cbr\u003e Equity Market Neutral.\u003cbr\u003e Event Driven.\u003cbr\u003e Fixed Income.\u003cbr\u003e Macro.\u003cbr\u003e Market Timing.\u003cbr\u003e Merger Arbitrage.\u003cbr\u003e Relative Value Arbitrage.\u003cbr\u003e Sector Long\/Short.\u003cbr\u003e Short Selling\/Short Bias.\u003cbr\u003e Summary.\u003cbr\u003e \u003cbr\u003e 3 Fund of Funds Mechanics and the Two-Tiered Structure.\u003cbr\u003e Structural Considerations.\u003cbr\u003e Organization Structure.\u003cbr\u003e Company Structure.\u003cbr\u003e Domicile.\u003cbr\u003e Subscriptions and Registration Exemptions.\u003cbr\u003e Minimum Investment Size.\u003cbr\u003e Fees.\u003cbr\u003e Lockup, Redemption, and Liquidity.\u003cbr\u003e The Fund of Funds Management Company.\u003cbr\u003e Manager Due Diligence and Selection.\u003cbr\u003e Risk Management.\u003cbr\u003e Operations.\u003cbr\u003e Performance and Exposure Reporting.\u003cbr\u003e Summary.\u003cbr\u003e \u003cbr\u003e 4 Advantages and Disadvantages of Funds of Funds Advantages.\u003cbr\u003e Diversification.\u003cbr\u003e Due Diligence.\u003cbr\u003e Risk Management.\u003cbr\u003e Portfolio Management: Strategy Selection and Manager Selection.\u003cbr\u003e Access to Funds\/Capacity.\u003cbr\u003e Consolidated Reporting.\u003cbr\u003e Fees.\u003cbr\u003e Performance.\u003cbr\u003e Disadvantages.\u003cbr\u003e Exposure to Other Investors’ Cash Flows.\u003cbr\u003e Fees.\u003cbr\u003e Lack of Control\/Customization.\u003cbr\u003e Decreased Transparency.\u003cbr\u003e Summary.\u003cbr\u003e \u003cbr\u003e \u003cb\u003ePart 2\u003c\/b\u003e \u003cb\u003eHistorical Performance of Funds of Funds.\u003cbr\u003e \u003c\/b\u003e5 Performance of Funds of Funds Fund of Funds Substrategies.\u003cbr\u003e HFRI Fund of Funds Conservative Index.\u003cbr\u003e HFRI Fund of Funds Strategic Index.\u003cbr\u003e HFRI Fund of Funds Diversified Index.\u003cbr\u003e HFRI Fund of Funds Market Defensive Index.\u003cbr\u003e Fund of Funds Returns 1990-2002.\u003cbr\u003e Fund of Funds Returns 1990-2002.\u003cbr\u003e Fund of Funds Volatility 1990-2002.\u003cbr\u003e Fund of Funds Volatility 1990-2002.\u003cbr\u003e Fund of Funds Return Versus Volatility 1990-2002.\u003cbr\u003e Fund of Funds Risk-Adjusted Returns--The Sharpe Ratio.\u003cbr\u003e Sharpe Ratio 1990-2002.\u003cbr\u003e Sharpe Ratio 2000-2002.\u003cbr\u003e Preservation of Capital 1990-2002.\u003cbr\u003e Fund of Funds Performance Versus Equities.\u003cbr\u003e Fund of Funds Performance During Bear and Bull Markets.\u003cbr\u003e Average Performance During Negative Periods and Positive Periods 1990-2002.\u003cbr\u003e Return Distribution 1990-2002.\u003cbr\u003e Fund of Funds Performance During Periods of Market Stress.\u003cbr\u003e Summary.\u003cbr\u003e \u003cbr\u003e 6 Fund of Funds in a Portfolio With Traditional Assets.\u003cbr\u003e Linear Analysis of Returns.\u003cbr\u003e Adding Funds of Funds to a Traditional Portfolio.\u003cbr\u003e Achieving Superior Risk-Adjusted Returns.\u003cbr\u003e Summary.\u003cbr\u003e \u003cbr\u003e \u003cb\u003ePart 3\u003c\/b\u003e \u003cb\u003eA Commonsense Approach to Selecting Funds of Funds.\u003c\/b\u003e\u003cbr\u003e 7 Defining Objectives and Identifying Candidates Step 1: Define Objectives and Parameters.\u003cbr\u003e Objectives.\u003cbr\u003e Parameters.\u003cbr\u003e Strategy Restrictions.\u003cbr\u003e Structural Requirements.\u003cbr\u003e \u003ci\u003eFund of Funds Objectives and Parameters Worksheet.\u003c\/i\u003e\u003cbr\u003e Step 2: Screen to Create a Funds of Funds Short List.\u003cbr\u003e HFRI Fund of Funds Conservative Index.\u003cbr\u003e HFRI Fund of Funds Strategic Index.\u003cbr\u003e HFRI Fund of Funds Diversified Index.\u003cbr\u003e HFRI Fund of Funds Market Defensive Index.\u003cbr\u003e Summary.\u003cbr\u003e \u003cbr\u003e 8 Issues in Due Diligence: The Fund of Funds Firm Background Information.\u003cbr\u003e Staff Information.\u003cbr\u003e Company Structure.\u003cbr\u003e Asset Management Activities.\u003cbr\u003e Product Information.\u003cbr\u003e Performance.\u003cbr\u003e Summary. \u003cbr\u003e \u003cbr\u003e 9 Issues in Due Diligence: Portfolio Management Asset Allocation\/Style Selection.\u003cbr\u003e Due Diligence Criteria in Manager Selection.\u003cbr\u003e Portfolio Construction.\u003cbr\u003e Summary. \u003cbr\u003e \u003cbr\u003e 10 Issues in Due Diligence: Risk Management Transparency and Separately Managed Accounts.\u003cbr\u003e Transparency.\u003cbr\u003e Managed Account Structures.\u003cbr\u003e Pricing Risk Case Study: Lipper.\u003cbr\u003e Style Drift Case Study: Integral.\u003cbr\u003e Risk Management.\u003cbr\u003e Compliance and Legal Issues.\u003cbr\u003e Summary.\u003cbr\u003e \u003cbr\u003e 11 Fund of Funds Selection Case Study.\u003cbr\u003e Scenario.\u003cbr\u003e Step 1: Defining Investment Objectives and Parameters.\u003cbr\u003e Step 2: Screening to Create the Funds of Funds Short Lis.t\u003cbr\u003e Step 3: Conducting a Due Diligence Screen of the Funds of Funds Short List.\u003cbr\u003e Step 4: Evaluating Finalists for Selection.\u003cbr\u003e Final Selections.\u003cbr\u003e Summary. \u003cbr\u003e \u003cbr\u003e Appendix A: AIMA Due Diligence Questionnaire. \u003cbr\u003e Appendix B: Excerpts from HFR Fund of Funds Industry Report.\u003cbr\u003e \u003cbr\u003e Index.  \u003cb\u003eJoseph G. Nicholas, JD,\u003c\/b\u003e is founder and chairman of HFR Group, LLC, which includes HFR Asset Management, LLC, a fund-of-funds management company, HFR Europe, Ltd, an investment advisory firm, and Hedge Fund Research, Inc., a leading supplier of hedge fund data. Author of \u003ci\u003eInvesting in Hedge Funds\u003c\/i\u003e and \u003ci\u003eMarket-Neutral Investing,\u003c\/i\u003e he is a frequent lecturer and media expert on topics relating to alternative investments.  \"While hedge fund of funds have proliferated as a relatively new investment vehicle, reliable information about these vehicles has been limited. \u003cb\u003eJoe Nicholas's timely book does a magnificent job of providing concise, valuable information about these popular new funds.\u003c\/b\u003e\"\u003cbr\u003e - \u003cb\u003eDan Rauchle\u003cbr\u003e \u003c\/b\u003ePresident, Wells Fargo Alternative Asset Management\u003cbr\u003e \u003cbr\u003e \"A creative and disciplined work \u003cb\u003ethat offers powerful insights into the fast-growing world of fund of funds investing and strategies.\u003c\/b\u003e A quick and informative read for both the HNW and institutional investor.\"\u003cbr\u003e - \u003cb\u003eLawrence Simon\u003cbr\u003e \u003c\/b\u003ePresident and CEO, Ivy Asset Management Corporation\u003cbr\u003e \u003cbr\u003e \"\u003ci\u003eHedge Fund of Funds Investing\u003c\/i\u003e provides a thorough, well-articulated discussion of the key characteristics and issues associated with investing in a fund of hedge funds. I believe the frank disclosure of both the advantages and disadvantages of these vehicles, as well as the information on selecting a fund of funds, will make this \u003cb\u003ebook required reading for individual and institutional investors alike.\u003c\/b\u003e\"\u003cbr\u003e - \u003cb\u003eFrank Belvedere, CFA, FCIA\u003cbr\u003e \u003c\/b\u003eVice President of Alternative Investments, Montrusco Bolton, Montreal, Canada\u003cbr\u003e \u003cbr\u003e This is a great reference for those who are just beginning to invest in hedge funds, as well as those who already have a hedge fund of funds allocation. If you are new to this investment vehicle, the book \u003cb\u003eprovides a thorough description of fund of funds and a great framework for conducting the due diligence process\u003c\/b\u003e. If you are already invested in fund-of-funds, it will prompt you to ask some probing questions at the next meeting with your fund-of-funds manager.\"\u003cbr\u003e - \u003cb\u003eCindy Koury\u003cbr\u003e \u003c\/b\u003eSenior Managing Director, Victory Capital Management\u003cbr\u003e \u003cbr\u003e \"Hedge fund expert Joe Nicholas dissects the industry's hottest trend, investing in fund of hedge funds, in his new book. \u003cb\u003eIt's a must-read for institutional and private investors alike.\u003c\/b\u003e\"\u003cbr\u003e - \u003cb\u003eJoe Hershberger\u003cbr\u003e \u003c\/b\u003eManaging Director, Putnam Lovell NBF Securities Inc.\u003cbr\u003e \u003cbr\u003e \"Joe does it again! \u003cb\u003eBy taking complex and critical issues in hedge funds, he transforms them into the most accessible and readable form.\u003c\/b\u003e Read it and reap.\"                                        - \u003cb\u003eP. Morgan Kash\u003cbr\u003e \u003c\/b\u003eSenior managing director, Paramount Capital, Inc.\u003cbr\u003e Board Member, Hedge Fund Association\u003cbr\u003e \u003cbr\u003e \"There has been tremendous growth in the fund of hedge fund business with assets doubling in the last year.  Joe clearly explains the reasons for this growth as he examines the hedge fund industry and assesses fund of hedge funds as the most effective way to gain exposure to the hedge fund arena. The book is \u003cb\u003ea terrific resource\u003c\/b\u003e for those considering an investment in hedge funds and\/or a fund of hedge funds.\"\u003cbr\u003e - \u003cb\u003ePatricia Young\u003cbr\u003e \u003c\/b\u003eManaging Director and CIO, NewMarket Capital Partners, LLC\u003cbr\u003e \u003cbr\u003e \"Joe Nicholas has created \u003cb\u003ean authoritative and innovative handbook of fund of funds investing that is essential for both financial and nonfinancial decision makers.\u003c\/b\u003e  Building upon his previous writing, he has successfully applied his practical hands-on experience to demystify the hedge fund industry using common sense explanations that do not depend on obscure jargon or understanding.\"\u003cbr\u003e - \u003cb\u003eSara Albrecht, CFA\u003cbr\u003e \u003c\/b\u003eExecutive Committee and Trustee,  Museum of Contemporary Art, Chicago","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47989354922213,"sku":"NP9781576601242","price":80.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781576601242.jpg?v=1761783791","url":"https:\/\/k12savings.com\/es\/products\/hedge-fund-of-funds-investing-isbn-9781576601242","provider":"K12savings","version":"1.0","type":"link"}