{"product_id":"managing-hedge-fund-managers-isbn-9780470197592","title":"Managing Hedge Fund Managers","description":"Invaluable insight into measuring the performance of today's hedge fund manager\u003cbr\u003e \u003cbr\u003e More and more institutional funds and high-net-worth assets are finding their way to hedge funds. This book provides the quantitative and qualitative measures and analysis that investment managers, investment advisors, and fund of fund managers need to allocate and monitor their client's assets properly. It addresses important topics such as Modern Portfolio Theory (MPT) and Post Modern Portfolio Theory (PMPT), choosing managers, watching performance, and researching alternate asset classes. Author Edward Stavetski also includes an appendix showing detailed case studies of hedge funds, and gives readers a road map to monitor their investments.\u003cbr\u003e \u003cbr\u003e Edward J. Stavetski (Wayne, PA) is Director of Investment Oversight for Wilmington Family Office, serving ultra high-net-worth families in strategic asset allocation, traditional and alternative investment manager selection, and oversight.  Preface.  \u003cp\u003eHighlights of the Book.\u003c\/p\u003e \u003cp\u003eAcknowledgments.\u003c\/p\u003e \u003cp\u003eIntroduction.\u003c\/p\u003e \u003cp\u003eThe Art and Science of Hedge Fund Investing—Are You Precisely Wrong or Approximately Correct?\u003c\/p\u003e \u003cp\u003eThe Explosion of Hedge Funds.\u003c\/p\u003e \u003cp\u003eWhat are Hedge Funds?\u003c\/p\u003e \u003cp\u003eFinding a Comfort Zone.\u003c\/p\u003e \u003cp\u003eA Look beneath the (Book) Covers.\u003c\/p\u003e \u003cp\u003eAs You Begin.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1. Asset Allocation and Fiduciary Duty.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInvestment Policy Statement: The Roadmap.\u003c\/p\u003e \u003cp\u003eDeterminants of Portfolio Performance.\u003c\/p\u003e \u003cp\u003eWhy Alternate Investments?\u003c\/p\u003e \u003cp\u003eA Closer Look at Hedge Fund Structures.\u003c\/p\u003e \u003cp\u003eThe Rise of Socially Responsible Investing.\u003c\/p\u003e \u003cp\u003eFiduciary Responsibility.\u003c\/p\u003e \u003cp\u003eWhere Do I Start?\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2. Large Versus Small Funds.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGood Things in Small Packages.\u003c\/p\u003e \u003cp\u003eResearch Confirms Small Fund Advantage.\u003c\/p\u003e \u003cp\u003ePerformance of New Small Funds.\u003c\/p\u003e \u003cp\u003eAttrition Rates.\u003c\/p\u003e \u003cp\u003eDrivers of Outperformance.\u003c\/p\u003e \u003cp\u003eInvested Interests.\u003c\/p\u003e \u003cp\u003eAligned Interests.\u003c\/p\u003e \u003cp\u003ePoint of Diminishing Returns.\u003c\/p\u003e \u003cp\u003eMaster of Trend line Analysis.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3. The Search for an Honest Man.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinding Your Manager.\u003c\/p\u003e \u003cp\u003ePrime Brokers.\u003c\/p\u003e \u003cp\u003eConferences and Industry Events.\u003c\/p\u003e \u003cp\u003eIndustry Publications.\u003c\/p\u003e \u003cp\u003eIncubators and Platforms.\u003c\/p\u003e \u003cp\u003eIndustry Websites and Databases.\u003c\/p\u003e \u003cp\u003eBuilding Your Own Database.\u003c\/p\u003e \u003cp\u003eUnconventional Sources.\u003c\/p\u003e \u003cp\u003eSix Steps to Kevin Bacon.\u003c\/p\u003e \u003cp\u003eSizing up the Flock.\u003c\/p\u003e \u003cp\u003eWhat's in the DDQ?\u003c\/p\u003e \u003cp\u003eSummary.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4. Performance Analysis.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTorturing the Numbers Until They Confess.\u003c\/p\u003e \u003cp\u003eThe First Step: Understand What Is Being Measured.\u003c\/p\u003e \u003cp\u003eTwo Sides to Hedge Fund Performance: Long and Short.\u003c\/p\u003e \u003cp\u003ePerformance Standards.\u003c\/p\u003e \u003cp\u003eCheck the Entry\u003c\/p\u003e \u003cp\u003eFinding a Benchmark\u003c\/p\u003e \u003cp\u003ePeer Analysis\u003c\/p\u003e \u003cp\u003eConfusion from the Best and the Brightest?\u003c\/p\u003e \u003cp\u003eA Practitioners View.\u003c\/p\u003e \u003cp\u003eExamine the Bad.\u003c\/p\u003e \u003cp\u003eExamine the Good.\u003c\/p\u003e \u003cp\u003eExpect the Improbable.\u003c\/p\u003e \u003cp\u003eI Surrender.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5. Risk in Hedge Funds.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk Is Like the Weather: Everyone Talks About It, but No One Does Anything About It.\u003c\/p\u003e \u003cp\u003eMajor Risk Categories.\u003c\/p\u003e \u003cp\u003eLiquidity Risk.\u003c\/p\u003e \u003cp\u003eHigh Watermark Risk.\u003c\/p\u003e \u003cp\u003eConcentration Risk.\u003c\/p\u003e \u003cp\u003eOperational Risk.\u003c\/p\u003e \u003cp\u003eLiquidity Mismatch Risk.\u003c\/p\u003e \u003cp\u003eTransparency Risk.\u003c\/p\u003e \u003cp\u003eRisk Process.\u003c\/p\u003e \u003cp\u003eLeverage Risk.\u003c\/p\u003e \u003cp\u003eShort Selling Risk.\u003c\/p\u003e \u003cp\u003eReputation Risk.\u003c\/p\u003e \u003cp\u003eSubmerged Risk.\u003c\/p\u003e \u003cp\u003eCounterparty Risk.\u003c\/p\u003e \u003cp\u003eMarket Risk.\u003c\/p\u003e \u003cp\u003eCredit Risk.\u003c\/p\u003e \u003cp\u003eModel Risk.\u003c\/p\u003e \u003cp\u003eComplexity Risk.\u003c\/p\u003e \u003cp\u003eKey Person Risk.\u003c\/p\u003e \u003cp\u003eSensitivity to Assumptions Risk.\u003c\/p\u003e \u003cp\u003eNAV Instability Risk.\u003c\/p\u003e \u003cp\u003eDerivatives Risk.\u003c\/p\u003e \u003cp\u003eSummary.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6. You Only Find out Who Is Swimming Naked When the Tide Goes Out.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLook Behind the Numbers.\u003c\/p\u003e \u003cp\u003eFilling out the DDQ.\u003c\/p\u003e \u003cp\u003eForm ADV Part II.\u003c\/p\u003e \u003cp\u003eFund Brochures and Documents.\u003c\/p\u003e \u003cp\u003ePlanning the On-Site Visit.\u003c\/p\u003e \u003cp\u003eSummary.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7. Let the Games Begin.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Due Diligence Process.\u003c\/p\u003e \u003cp\u003eThe Process.\u003c\/p\u003e \u003cp\u003eExamining the Organization.\u003c\/p\u003e \u003cp\u003ePreparing for the On-Site Visit.\u003c\/p\u003e \u003cp\u003ePreparing the Final Evaluation.\u003c\/p\u003e \u003cp\u003eIn Conclusion.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8. Getting Ready is the Secret to Success.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePortfolio Construction.\u003c\/p\u003e \u003cp\u003eTop-Down Strategy Analysis.\u003c\/p\u003e \u003cp\u003eBottom-up Manager Analysis.\u003c\/p\u003e \u003cp\u003eTest or Model the Portfolio.\u003c\/p\u003e \u003cp\u003ePortfolio Optimization.\u003c\/p\u003e \u003cp\u003eSummary.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9. Navigating Buyers Remorse.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIt's Always Darkest Before It Goes Completely Black.\u003c\/p\u003e \u003cp\u003eLong Term Capital Management: Poor Diversification and High Leverage Are a Dangerous Combination.\u003c\/p\u003e \u003cp\u003eBayou Group, LLC: Due Diligence is a Must.\u003c\/p\u003e \u003cp\u003eWood River Capital Management: A Lack of Experience and Auditing.\u003c\/p\u003e \u003cp\u003eMotherRock: The Liquidity Squeeze in a Small Market Will End Badly When Volatility Increases.\u003c\/p\u003e \u003cp\u003eAmaranth: Liquidity and Concentrated Portfolios Can Drag a Fund down as Trend of Any Trade Eventually Reverses.\u003c\/p\u003e \u003cp\u003eRecent Events: Ospraie Fund.\u003c\/p\u003e \u003cp\u003eYour Final Exam.\u003c\/p\u003e \u003cp\u003eApplying Your Education.\u003c\/p\u003e \u003cp\u003eThe Importance of Second Acts.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10. Monitoring Your Flock.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eI Walk in the Valley Darkness, I Fear No Evil.\u003c\/p\u003e \u003cp\u003eEveryone's Favorite Metric: Performance.\u003c\/p\u003e \u003cp\u003ePortfolio Exposures.\u003c\/p\u003e \u003cp\u003ePerformance Trends.\u003c\/p\u003e \u003cp\u003ePeer Group Analysis.\u003c\/p\u003e \u003cp\u003eStrategy Reviews.\u003c\/p\u003e \u003cp\u003eFund Size and Performance Impact.\u003c\/p\u003e \u003cp\u003eManagement and Personnel Reviews.\u003c\/p\u003e \u003cp\u003eThird Party Vendors.\u003c\/p\u003e \u003cp\u003eRegulatory and Legal Risk.\u003c\/p\u003e \u003cp\u003eBusiness Continuity Risk.\u003c\/p\u003e \u003cp\u003eA Final Word on Monitoring.\u003c\/p\u003e \u003cp\u003eAppendix A. Sample Investment Policy Statement.\u003c\/p\u003e \u003cp\u003eInvestment Policy Statement for Wilmington Family Office.\u003c\/p\u003e \u003cp\u003eI. Statement of Investment Objectives.\u003c\/p\u003e \u003cp\u003eII. Asset Allocation \u0026amp; Rebalancing.\u003c\/p\u003e \u003cp\u003eIII. Guidelines for the Selection of Fixed-Income Securities.\u003c\/p\u003e \u003cp\u003eIV. Guidelines for Selection of Equity Investments.\u003c\/p\u003e \u003cp\u003eV. Standards of Performance.\u003c\/p\u003e \u003cp\u003eVI. Selection of Managers.\u003c\/p\u003e \u003cp\u003eVII. Responsibilities of Managers.\u003c\/p\u003e \u003cp\u003eAppendix B. Sample ADV Part II with ADV Schedule F.\u003c\/p\u003e \u003cp\u003eAppendix C. Hedge Fund Manager Due Diligence Questionnaire.\u003c\/p\u003e \u003cp\u003eI. Background.\u003c\/p\u003e \u003cp\u003eII. Investment Process, Strategy, and Philosophy.\u003c\/p\u003e \u003cp\u003eIII. Business Plans.\u003c\/p\u003e \u003cp\u003eIV. Manager Selection and Research.\u003c\/p\u003e \u003cp\u003eV. Manager Monitoring and Risk Management.\u003c\/p\u003e \u003cp\u003eVI. Performance and Fees.\u003c\/p\u003e \u003cp\u003eVII. Compliance and Client Reporting.\u003c\/p\u003e \u003cp\u003eVIII. Personnel.\u003c\/p\u003e \u003cp\u003eIX. Operations and Administration.\u003c\/p\u003e \u003cp\u003eX. Taxes.\u003c\/p\u003e \u003cp\u003eXI. Performance (See Attached – Appendix 6).\u003c\/p\u003e \u003cp\u003eAttachments.\u003c\/p\u003e \u003cp\u003eAppendix D. U.S. Equity Long\/Short Managers.\u003c\/p\u003e \u003cp\u003eProposal Questionnaire.\u003c\/p\u003e \u003cp\u003eA. Organization.\u003c\/p\u003e \u003cp\u003eB. Investment Professionals (Product Specific).\u003c\/p\u003e \u003cp\u003eC. Investment Philosophy and Process.\u003c\/p\u003e \u003cp\u003eD. Trading Process and Systems.\u003c\/p\u003e \u003cp\u003eE. Performance.\u003c\/p\u003e \u003cp\u003eF. Composite\/Product Information.\u003c\/p\u003e \u003cp\u003eG. References.\u003c\/p\u003e \u003cp\u003eBibliography.\u003c\/p\u003e \u003cp\u003eChapter 1.\u003c\/p\u003e \u003cp\u003eChapter 2.\u003c\/p\u003e \u003cp\u003eChapter 3.\u003c\/p\u003e \u003cp\u003eChapter 4.\u003c\/p\u003e \u003cp\u003eChapter 5.\u003c\/p\u003e \u003cp\u003eChapter 6.\u003c\/p\u003e \u003cp\u003eChapter 7.\u003c\/p\u003e \u003cp\u003eChapter 8.\u003c\/p\u003e \u003cp\u003eChapter 9.\u003c\/p\u003e \u003cp\u003eChapter 10.\u003c\/p\u003e \u003cp\u003eIndex.\u003c\/p\u003e \"…a comprehensive guide to the process of selecting hedge fund managers, and it flings open doors into a traditionally secretive world.\" (\u003ci\u003eThe Investment Professional\u003c\/i\u003e) \u003cb\u003eEDWARD J. STAVETSKI\u003c\/b\u003e is Director of Investment Oversight and Chair of the Investment Committee for the Wilmington Family Office. He is an active member of the CFA Institute and served as a board member and past president of the CFA Society of Philadelphia, Inc. Stavetski was a regular contributor to TheStreet.com, Investopedia, and RealMoney. He received his bachelor of arts in chemistry from West Virginia University and has held NASD Series 7, 63, and 65 licenses.  \u003cp\u003eFilled with complicated investment structures and vehicles, the opaque world of hedge funds can be hard to get a handle on. But that doesn't mean you should avoid the opportunities it has to offer. Whether you consider hedge funds an asset class or just an investment vehicle, you need to understand some of the technical aspects to structure, the comparative performance statistics, and the continual vigilance needed to successfully navigate this field. That's why investment expert Edward Stavetski has written Managing Hedge Fund Managers.\u003c\/p\u003e \u003cp\u003ePage by page, Stavetski skillfully examines both the art and science of hedge fund investing. Starting with the role of the Investment Policy Statement (IPS)—where investor guidelines and expectations are set—the discussion flows to quantitative measures, qualitative rankings, and monitoring your managers. Along the way, Stavetski breaks down each step of the due diligence process and focuses on critical tasks, reviews, and questions.\u003c\/p\u003e \u003cp\u003eWhat is stressed time and again throughout the book is that while numbers and calculations are important to understand, they don't necessarily provide you with answers, but rather help you ask the appropriate questions. And with this book as your guide, you'll quickly discover the right questions to ask in your hedge fund search.\u003c\/p\u003e \u003cp\u003eTopics covered include:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eThe virtues of emerging managers versus large established ones and the risks involved\u003c\/li\u003e \u003cli\u003e \u003cp\u003eCasting a wide net to find a new manager\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eHow to decipher the mind-numbing statistics that often surround hedge fund investing\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eThe various concepts of risk and the real exposure you face as an investor\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eResearching qualitative factors that impact a hedge fund\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eHighly detectable factors that were responsible for the implosion of previous hedge funds\u003c\/p\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWhether you're an institutional investor building an entire portfolio or a high-net-worth individual looking for a single fund, the process by which you evaluate hedge funds should be comprehensive and consistent. With Managing Hedge Fund Managers as your guide, you'll learn how to approach this endeavor in a way that will improve your portfolio's overall return and put you in a better position to avoid the pitfalls that plague so many other fund investors.\u003c\/p\u003e  \"Edward Stavetski's \u003ci\u003eManaging Hedge Fund Managers\u003c\/i\u003e clearly and comprehensively explains everything you ever wanted to know but were afraid to ask about the hedge fund industry. Given the carnage in the world's stock markets and the recent hedge fund turbulence, Stavetski's book is especially timely and has added value today.\"\u003cbr\u003e —\u003cb\u003eDouglas A. Kass\u003c\/b\u003e, President, Seabreeze Partners Management, Inc.  \u003cp\u003e\"The publication of \u003ci\u003eManaging Hedge Fund Managers\u003c\/i\u003e is especially timely. The hedge fund community has been rocked by uncharacteristic performance, manager blow-up, and massive fraud. Ed's book will prove to be an essential reference for anyone wanting to perform—or rethink how they perform—appropriate due diligence on hedge fund investments.\"\u003cbr\u003e —\u003cb\u003eScott Welch\u003c\/b\u003e, Senior Managing Director, Investment Research \u0026amp; Strategy Fortigent, LLC\u003c\/p\u003e \u003cp\u003e\"Stavetski's book is perfectly timed for a market that is more cautious and skeptical than ever. In a readable style, this book is packed with practical insights and tips for investors who are exploring hedge funds or currently using them in their investment strategy. This book is must reading for an one involved with hedge funds.\"\u003cbr\u003e —\u003cb\u003eJames Ware\u003c\/b\u003e, author of \u003ci\u003eInvestment Leadership\u003c\/i\u003e and \u003ci\u003eHigh Performing Investment Teams\u003c\/i\u003e, international speaker on leadership and culture in the investment industry, founder and President of Focus Consulting Group, Inc.\u003c\/p\u003e \u003cp\u003e\"\u003ci\u003eManaging Hedge Fund Managers\u003c\/i\u003e is an indispensable guide to a confusing, murky task. No book can guarantee it will make you money. But I feel confident this volume will surely save you from losing money! Not reading this book will put investors in harm's way.\"\u003cbr\u003e —\u003cb\u003eTheodore R. Aronson\u003c\/b\u003e, Founding Partner of Aronson+Johnson+Ortiz, LP Former Chair of CFA Institute\u003c\/p\u003e \u003cp\u003e\"Ed Stavetski has written a superbly informative and extremely well-timed book on how to evaluate and select hedge fund managers. His in-depth knowledge and firsthand experience allow him to cut to the core of what's important to look for in a manager, providing the potential hedge fund investor with an immensely valuable tool. A must-read that enlightens and entertains, all at once.\"\u003cbr\u003e —\u003cb\u003eDaniel J. Barnett\u003c\/b\u003e, CEO, Revere Capital Advisors LLC\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989565325541,"sku":"NP9780470197592","price":85.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470197592.jpg?v=1761784618","url":"https:\/\/k12savings.com\/es\/products\/managing-hedge-fund-managers-isbn-9780470197592","provider":"K12savings","version":"1.0","type":"link"}