{"product_id":"the-future-of-hedge-fund-investing-isbn-9780470537442","title":"The Future of Hedge Fund Investing","description":"\u003cp\u003eA detailed look at how to fix the hedge fund industry\u003c\/p\u003e \u003cp\u003e\u003ci\u003eThe Future of Hedge Fund Investing\u003c\/i\u003e spells out in refreshingly stark terms exactly how the industry let down its clients, and the changes needed to restore their confidence. Written by Monty Agarwal, the founder of Predator Capital Management, this insider's guide gives a full assessment of the business, including the advantages of hedge funds, their pitfalls, and, most importantly, how to avoid these missteps.\u003c\/p\u003e \u003cp\u003eThe book begins by describing the hedge fund universe, which includes funds and fund of funds; fund regulators, major investors, and middlemen; and fee structures, incentives, and typical investment strategies. From here, Agarwal explores possible solutions and fixes as he touches upon several important issues within this field.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eExamines hedge funds' role in the 2008 market crisis and what can be learned from it\u003c\/li\u003e \u003cli\u003eDiscusses the structural changes for fund of funds in areas including trading, diversification, risk management, and due diligence\u003c\/li\u003e \u003cli\u003eProvides guidance for investors to follow when interviewing hedge fund managers\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWhether you're a financial professional, a potential investor, or simply an interested reader, \u003ci\u003eThe Future of Hedge Fund Investing\u003c\/i\u003e gives you a clear look at the state of hedge funds today as well as a picture of what the future may hold for them.\u003c\/p\u003e  Foreword.  \u003cp\u003eIntroduction.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Recent Hedge Fund Scandals.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePalm Beach, Florida.\u003c\/p\u003e \u003cp\u003eKL Financial, March 2005.\u003c\/p\u003e \u003cp\u003eAmaranth Advisors, September 2006.\u003c\/p\u003e \u003cp\u003eBernie Madoff, December 2008.\u003c\/p\u003e \u003cp\u003eLesson # 1: Relationships Do Not Trump Due Diligence.\u003c\/p\u003e \u003cp\u003eLesson # 2: Investing in Hedge Funds: Hire Experts.\u003c\/p\u003e \u003cp\u003eLesson # 3: “We Did Not Know What We Were Investing In,” Is Not An Excuse.\u003c\/p\u003e \u003cp\u003eConclusion: So Called Experts, Fund of Funds, Have Failed.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 The Players.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFlow of Capital in the Hedge Fund Industry.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Hedge Funds.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIncentives and the Disincentives of the Hedge Fund Fee Structure.\u003c\/p\u003e \u003cp\u003eEducation of the Future Hedge Fund Manager.\u003c\/p\u003e \u003cp\u003eTraining Grounds of the Hedge Fund Manager.\u003c\/p\u003e \u003cp\u003eThe Chart Readers.\u003c\/p\u003e \u003cp\u003eThe Quants.\u003c\/p\u003e \u003cp\u003eThe Global Macro Trader.\u003c\/p\u003e \u003cp\u003eFrom a Moth to a Butterfly.\u003c\/p\u003e \u003cp\u003eAndrew Lahde's Goodbye Letter.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Hedge Fund Strategies.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLong Short Equity.\u003c\/p\u003e \u003cp\u003eEvent Driven.\u003c\/p\u003e \u003cp\u003eGlobal Macro.\u003c\/p\u003e \u003cp\u003eFixed Income Arbitrage.\u003c\/p\u003e \u003cp\u003eRelative Value Arbitrage.\u003c\/p\u003e \u003cp\u003eEffect of 2008 on these Strategies and Looking Forward.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Hedge Fund Service Providers \u0026amp; Regulators.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBuilding a Business.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Funds of Hedge Funds.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePhilosophy and Services.\u003c\/p\u003e \u003cp\u003eFailure of Fiduciary Duties.\u003c\/p\u003e \u003cp\u003eStatistical Bucketing by Strategy.\u003c\/p\u003e \u003cp\u003eDue Diligence and the Analyst.\u003c\/p\u003e \u003cp\u003eWhat's in a Name.\u003c\/p\u003e \u003cp\u003eThe AIMA Due Diligence Questionnaire.\u003c\/p\u003e \u003cp\u003eWhere are the Experienced Professionals?\u003c\/p\u003e \u003cp\u003eThe (Lack of) Ongoing Due Diligence.\u003c\/p\u003e \u003cp\u003eMulti-Strategy Hedge Funds.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 An Expert Failure.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUselessness of Historical Data Crunching.\u003c\/p\u003e \u003cp\u003eQuest for Steady Returns—Systematic Destruction of Alpha.\u003c\/p\u003e \u003cp\u003eBucketing by Asset Class and Geography – A Flawed Concept.\u003c\/p\u003e \u003cp\u003eAlpha versus Beta—Trader Generates Alpha, not The Strategy.\u003c\/p\u003e \u003cp\u003eSpecialized Strategies.\u003c\/p\u003e \u003cp\u003e10% to 20% Allocation Rule.\u003c\/p\u003e \u003cp\u003eManaging a Hedge Fund Manager.\u003c\/p\u003e \u003cp\u003eBookrunner Versus a Proprietary Trader.\u003c\/p\u003e \u003cp\u003eSo-Called Hedge Fund Experts.\u003c\/p\u003e \u003cp\u003eHedge Funds – House of Second or Third Chances?\u003c\/p\u003e \u003cp\u003eWhy Does a Losing Hedge Fund Manager Shut down His Fund?\u003c\/p\u003e \u003cp\u003eWhy Does the Industry Keep Funding a Failed Trader?\u003c\/p\u003e \u003cp\u003eConclusion.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Remodeling the Funds of Hedge Funds.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTraders Managing Trading Investments.\u003c\/p\u003e \u003cp\u003eDifferentiate Between Alpha and Beta Strategies.\u003c\/p\u003e \u003cp\u003eBucketing Based on Trader Methodology.\u003c\/p\u003e \u003cp\u003eAppropriate Risk Template by Strategy.\u003c\/p\u003e \u003cp\u003eManager Stop loss and Linked Redemptions.\u003c\/p\u003e \u003cp\u003eNot 10% Majority Every Time.\u003c\/p\u003e \u003cp\u003eOn-Going Due Diligence – It is Not Just About Returns.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Correct Risk Due Diligence.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePosition Concentration? So What.\u003c\/p\u003e \u003cp\u003eManagement of Stop Loss Limits – The Be-All and End-All.\u003c\/p\u003e \u003cp\u003eOver-Leverage and Illiquidity.\u003c\/p\u003e \u003cp\u003eHedging – Will the Market Let You Short?\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Interviewing a Hedge Fund Manager.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRelationship.\u003c\/p\u003e \u003cp\u003eStrategy Related Questions.\u003c\/p\u003e \u003cp\u003eWhat Qualifies You to Execute This Strategy?\u003c\/p\u003e \u003cp\u003eWork Experience.\u003c\/p\u003e \u003cp\u003eRisk Appetite.\u003c\/p\u003e \u003cp\u003eThinker, Adapter, Entrepreneur?\u003c\/p\u003e \u003cp\u003eDiscipline and Character.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Hedge Fund Industry’s Role in 2008 Market Crisis.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBorrowers, Bankers and Investors.\u003c\/p\u003e \u003cp\u003eDon't Blame the Products, Blame the Users.\u003c\/p\u003e \u003cp\u003eFailed Due Diligence on Part of Investors.\u003c\/p\u003e \u003cp\u003eFailure of Fiduciary Responsibilities by Brokers and Lies by Borrowers.\u003c\/p\u003e \u003cp\u003eNo Hedge Fund Has Been Bailed Out.\u003c\/p\u003e \u003cp\u003eSystemic Risk and Derivative Transactions.\u003c\/p\u003e \u003cp\u003eRegulating Hedge Funds.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 The End.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRobert Allen Stanford's Ponzi Scheme.\u003c\/p\u003e \u003cp\u003eHedge Fund Industry Offers More Disclosure.\u003c\/p\u003e \u003cp\u003eSimilar Problems with the Pension Funds, Endowments, SWFs.\u003c\/p\u003e \u003cp\u003eBibliography.\u003c\/p\u003e \u003cp\u003eIndex.\u003c\/p\u003e \u003cb\u003eMonty Agarwal\u003c\/b\u003e worked as an interest rate and currency trader on Wall Street between 1995 and 2003. From 2003 to 2008, he was a portfolio manager in the hedge fund industry. Agarwal founded Predator Capital Management, which had $500 million under management, where he was the portfolio manager of an Asia-focused interest rate and currency market strategy. Agarwal also served as a portfolio manager for III Funds. He holds a bachelor's degree in computer science and engineering from the University of Pennsylvania and an MBA, with a concentration in finance and business economics, from the University of Chicago Booth School of Business. Visit www.MACMLLC.com to learn more about the services Agarwal provides to the hedge fund investor community.  \u003cb\u003eHow to fix the hedge fund industry\u003c\/b\u003e  \u003cp\u003eThe world will always have its Ponzi schemes and money managers like Bernie Madoff. But for today's financial professional, the germane question raised by recent scandals is not why people commit crimes, but rather why the paid experts—especially fund of funds managers—failed to detect investment hazards that seem so glaring in retrospect.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eThe Future of Hedge Fund Investing\u003c\/i\u003e spells out, in refreshingly stark terms, exactly how the industry let down its clients and the changes needed to restore their confidence. Written by Monty Agarwal, the founder of Predator Capital Management, this insider's guide gives a full assessment of the business, including the ad-vantages of hedge funds, their pitfalls, and, most importantly, how to avoid these missteps.\u003c\/p\u003e \u003cp\u003eThe coverage begins by describing the hedge fund universe, which includes funds and funds of funds; fund regulators, major investors, and middlemen; fee structures, incentives, what it takes to become a successful hedge fund manager, and typical investment strategies. From here, Agarwal explores possible solutions and fixes as he touches upon several important issues within this field, such as:\u003c\/p\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eStructural changes for funds of funds in areas including trading, diversification, risk management, and due diligence\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eGuidelines for investors to follow when interviewing hedge fund managers\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eHow to improve the overall due diligence process\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eThe role of hedge funds in the 2008 market crisis and what can be learned from it\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eHow the experts failed and the different approach the industry needs to adopt to avoid these failures as we move forward\u003c\/p\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eGiven the vital role hedge funds play in the global capital markets, this industry deserves to be both better understood and better run. \u003ci\u003eThe Future of Hedge Fund Investing\u003c\/i\u003e offers a critical yet constructive analysis of these crucial financial entities. Whether you're a financial professional, a potential investor, or simply an interested reader, \u003ci\u003eThe Future of Hedge Fund Investing\u003c\/i\u003e gives you a clear look at the state of hedge funds today as well as a picture of what the future may hold for them.\u003c\/p\u003e  \u003cb\u003ePraise for\u003cbr\u003e The Future of Hedge Fund Investing\u003c\/b\u003e  \u003cp\u003e\"The Future of Hedge Fund Investing is an excellent survey of the hedge fund industry landscape. Monty Agarwal's treatment of the subject serves as a thoughtful guide for investors in hedge funds and their managers. The book references a variety of recent events that are sure to shape the industry's future. At the same time, it offers practical, useful insights and model solutions to those who wish to successfully navigate the complexities and challenges of hedge fund investing. A highly recommended read.\"—Sharath M. Sury, Dean's Executive Professor of Finance, Santa Clara University; Adjunct Professor of Economics, University of California; Director, Institute of Financial Innovation \u0026amp; Risk Management; and former CEO, S4 Capital Family Office\u003c\/p\u003e \u003cp\u003e\"While hedge funds flounder and regulators fiddle, Monty Agarwal is the first to objectively diagnose the industry's dysfunctions and provide a solid road map for its rehabilitation. This book is an absolute must for investors who got burned by hedge funds in the past and for anyone who wants to use hedge funds for wealth-building in the future.\"—Martin D. Weiss, author of the New York Times bestseller, The Ultimate Depression Survival Guide\u003c\/p\u003e \u003cp\u003e\"As a fund of funds manager, I found Agarwal's 'other-side-of-the-table' perspective of having managed his own hedge fund to be entertaining and informative. His unique insight on how to approach various situations along the due diligence process in order to make the best investment decisions is invaluable to even the most experienced professionals in this business.\"—Alan Cheng, CFA, Portfolio Manager, Contego Capital Partners\u003c\/p\u003e \u003cp\u003e\"An in-depth look at the inner workings of the hedge fund industry. Agarwal clearly outlines some of the basic groundwork that must be done by investors interested in hedge funds. Filled with anecdotes and some clever analyses that expose a few of the recent illegal schemes in the financial industry, this is a must-read for any investor.\"—Arvind Hariharan, Global Head of Commodity Hybrids, Standard Bank\u003c\/p\u003e \u003cp\u003e\"This is a timely, entertaining, and thought-provoking book that challenges the prevailing investment allocation model in the hedge fund community. Agarwal uses his unique perspective as an experienced, successful trader and hedge fund manager to analyze recent hedge fund frauds and meltdowns and to suggest a new, superior methodology for hedge fund investing.\"—Jamie Lesher, Partner, Coronado Investments, LLC\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990234546405,"sku":"NP9780470537442","price":65.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470537442.jpg?v=1761787013","url":"https:\/\/k12savings.com\/es\/products\/the-future-of-hedge-fund-investing-isbn-9780470537442","provider":"K12savings","version":"1.0","type":"link"}