{"product_id":"the-hedge-fund-mirage-isbn-9781118164310","title":"The Hedge Fund Mirage","description":"\u003cb\u003eThe dismal truth about hedge funds and how investors can get a greater share of the profits\u003c\/b\u003e  \u003cp\u003eShocking but true: if all the money that's ever been invested in hedge funds had been in treasury bills, the results would have been twice as good.\u003c\/p\u003e \u003cp\u003eAlthough hedge fund managers have earned some great fortunes, investors as a group have done quite poorly, particularly in recent years. Plagued by high fees, complex legal structures, poor disclosure, and return chasing, investors confront surprisingly meager results. Drawing on an insider's view of industry growth during the 1990s, a time when hedge fund investors did well in part because there were relatively few of them, \u003ci\u003eThe Hedge Fund Mirage\u003c\/i\u003e chronicles the early days of hedge fund investing before institutions got into the game and goes on to describe the seeding business, a specialized area in which investors provide venture capital-type funding to promising but undiscovered hedge funds. Today's investors need to do better, and this book highlights the many subtle and not-so-subtle ways that the returns and risks are biased in favor of the hedge fund manager, and how investors and allocators can redress the imbalance.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eThe surprising frequency of fraud, highlighted with several examples that the author was able to avoid through solid due diligence, industry contacts, and some luck\u003c\/li\u003e \u003cli\u003eWhy new and emerging hedge fund managers are where generally better returns are to be found, because most capital invested is steered towards apparently safer but less profitable large, established funds rather than smaller managers that evoke the more profitable 1990s\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eHedge fund investors have had it hard in recent years, but \u003ci\u003eThe Hedge Fund Mirage\u003c\/i\u003e is here to change that, by turning the tables on conventional wisdom and putting the hedge fund investor back on top.\u003c\/p\u003e \u003cp\u003eIntroduction xi\u003c\/p\u003e \u003cp\u003eAcknowledgments xv\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 The Truth about Hedge Fund Returns 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow to Look at Returns 2\u003c\/p\u003e \u003cp\u003eDigging into the Numbers 3\u003c\/p\u003e \u003cp\u003eThe Investor’s View of Returns 6\u003c\/p\u003e \u003cp\u003eHow the Hedge Fund Industry Grew 10\u003c\/p\u003e \u003cp\u003eThe Only Thing That Counts Is Total Profits 13\u003c\/p\u003e \u003cp\u003eHedge Funds Are not Mutual Funds 14\u003c\/p\u003e \u003cp\u003eSummary 16\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 The Golden Age of Hedge Funds 19\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHedge Funds as Clients 20\u003c\/p\u003e \u003cp\u003eBuilding a Hedge Fund Portfolio 22\u003c\/p\u003e \u003cp\u003eThe Interview \u003ci\u003eIs \u003c\/i\u003ethe Investment Research 24\u003c\/p\u003e \u003cp\u003eLong Term Capital Management 27\u003c\/p\u003e \u003cp\u003eToo Many Bank Mergers 30\u003c\/p\u003e \u003cp\u003eSummary 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 The Seeding Business 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow a Venture Capitalist Looks at Hedge Funds 36\u003c\/p\u003e \u003cp\u003eFrom Concept to the Real Deal 38\u003c\/p\u003e \u003cp\u003eSearching for That Rare Gem 41\u003c\/p\u003e \u003cp\u003eEverybody Has a Story 46\u003c\/p\u003e \u003cp\u003eSome Things Shouldn’t Be Hedged 50\u003c\/p\u003e \u003cp\u003eThe Hedge Fund as a Business 52\u003c\/p\u003e \u003cp\u003eSummary 56\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Where Are the Customers’ Yachts? 59\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow Much Profit Is There Really? 60\u003c\/p\u003e \u003cp\u003eInvestors Jump In 63\u003c\/p\u003e \u003cp\u003eFees on Top of More Fees 65\u003c\/p\u003e \u003cp\u003eDrilling Down by Strategy 69\u003c\/p\u003e \u003cp\u003eHow to Become Richer Than Your Clients 74\u003c\/p\u003e \u003cp\u003eSummary 77\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 2008—The Year Hedge Funds Broke Their Promise to Investors 79\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinancial Crisis, 1987 Version 80\u003c\/p\u003e \u003cp\u003eHow 2008 Redefined Risk 82\u003c\/p\u003e \u003cp\u003eThe Hedge Fund as Hotel California 85\u003c\/p\u003e \u003cp\u003eTiming and Tragedy 93\u003c\/p\u003e \u003cp\u003eIn 2008, Down Was a Long Way 97\u003c\/p\u003e \u003cp\u003eSummary 98\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 The Unseen Costs of Admission 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow Some Investors Pay for Others 101\u003c\/p\u003e \u003cp\u003eMy Mid-Market or Yours? 104\u003c\/p\u003e \u003cp\u003eThe Benefits of Keen Eyesight 107\u003c\/p\u003e \u003cp\u003eShow Me My Money 111\u003c\/p\u003e \u003cp\u003eSummary 115\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 The Hidden Costs of Being Partners 117\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLimited Partners, Limited Rights 118\u003c\/p\u003e \u003cp\u003eFriends with no Benefits 120\u003c\/p\u003e \u003cp\u003eWatching the Legal Costs 125\u003c\/p\u003e \u003cp\u003eSummary 128\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Hedge Fund Fraud 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMore Crooks Than You Think 130\u003c\/p\u003e \u003cp\u003eMadoff 133\u003c\/p\u003e \u003cp\u003eKnow Your Audience 134\u003c\/p\u003e \u003cp\u003eAccounting Arbitrage 101 136\u003c\/p\u003e \u003cp\u003eChecking the Background Check 138\u003c\/p\u003e \u003cp\u003ePolitically Connected and Crooked? 140\u003c\/p\u003e \u003cp\u003ePaying Your Bills with Their Money 141\u003c\/p\u003e \u003cp\u003eWhy It’s Hard to Invest in Russia 143\u003c\/p\u003e \u003cp\u003eAfter Hours Due Diligence 145\u003c\/p\u003e \u003cp\u003eSummary 146\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Why Less Can Be More with Hedge Funds 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThere Are Still Winners 151\u003c\/p\u003e \u003cp\u003eAvoid the Crowds 154\u003c\/p\u003e \u003cp\u003eWhy Size Matters 158\u003c\/p\u003e \u003cp\u003eWhere Will They Invest All This Money? 166\u003c\/p\u003e \u003cp\u003eSummary 168\u003c\/p\u003e \u003cp\u003eAfterword 171\u003c\/p\u003e \u003cp\u003eBibliography 177\u003c\/p\u003e \u003cp\u003eAbout the Author 181\u003c\/p\u003e \u003cp\u003eIndex 183\u003c\/p\u003e  \u003cp\u003e\"Simon Lack, a hedge fund veteran exposes some unforeseen and uncomfortable truths about the industry in his new book.\" (\u003ci\u003eHedge Fund Net\u003c\/i\u003e, January 2012)\u003c\/p\u003e \u003cp\u003e\"...a cautionary tale from one who knows just about all the tricks...an easy, largely fun and certainly instructive read\" (\u003ci\u003eFinancial World\u003c\/i\u003e, February 2012)\u003c\/p\u003e \u003cp\u003e\"Devastating little book.... His conclusions will make uncomfortable reading for many self-styled 'masters of the universe'.... This book should be required reading for pension fund trustees.\" (Jonathan Ford, \u003ci\u003eFinancial Times\u003c\/i\u003e, 19th February 2012) \u003c\/p\u003e \u003cp\u003e \u003c\/p\u003e \u003cbr\u003e \u003cbr\u003e  \u003cbr\u003e \u003cbr\u003e  \u003cbr\u003e \u003cbr\u003e  \u003cbr\u003e \u003cbr\u003e  \u003cbr\u003e \u003cbr\u003e  \u003cbr\u003e \u003cbr\u003e  \u003cp\u003e\u003cb\u003eSIMON LACK\u003c\/b\u003e has spent his entire career in trading and hedge fund investing. After twenty-three years with JPMorgan, he founded SL Advisors, LLC, a Registered Investment Advisor, in 2009. Much of Lack's career with JPMorgan was spent in North American fixed income derivatives and forward FX trading, a business that he ran successfully through several bank mergers, ultimately overseeing fifty professionals and $300 million in annual revenues. He sat on JPMorgan's investment committee which allocated over $1 billion to hedge fund managers and founded the JPMorgan Incubator Funds, two privateequity vehicles that establish economic stakes for emerging hedge fund managers. Lack's financial markets experience dates back to 1980 when he began his career on the floor of the London Stock Exchange.    \u003c\/p\u003e\u003cp\u003eSure, hedge funds have produced some of the greatest fortunes in recent years, but the shocking reality is that investors would have made more putting their money into treasury bills instead. And while hedge funds have proved to be serious moneymakers for those that manage them, investors themselves rarely reap the benefits. In \u003ci\u003eThe Hedge Fund Mirage: The Illusion of Big Money and Why It's Too Good to Be True\u003c\/i\u003e, hedge fund expert Simon Lack blows the lid off the secret world of this class of investments, teaching you everything you need to know to maximize your own returns.  \u003c\/p\u003e\u003cp\u003eDrawing on an insider's view of hedge fund growth during the 1990s, a time when investors in the field did well in part because there were relatively few of them, \u003ci\u003eThe Hedge Fund Mirage\u003c\/i\u003e chronicles the history of the hedge fund, highlighting the many subtle and not-so-subtle ways that returns and risks are biased in favor of the fund manager, and how investors and allocators can redress this imbalance. Packed with information about the industry and what's wrong with it, the book steers you away from the traps that befall so many investors. Full of helpful pointers on how to really get the most out of your hedge fund investments, it encourages using new and emerging hedge fund managers whose returns are generally better, negotiating more assertively for stronger investor rights, and warns anyone putting their money in the hands of a manager to demand complete transparency at all times.  \u003c\/p\u003e\u003cp\u003eHedge fund investors have had it tough in recent years, but that doesn't mean that there isn't money to be made. As the success of hedge fund managers shows, opportunities are there. The dilemma for investors is figuring out how to identify managers you can trust and learning the techniques to keep more of the money generated using your capital. \u003ci\u003eThe Hedge Fund Mirage\u003c\/i\u003e is here to help, turning the tables on conventional industry wisdom to put you, the investor, back in charge.    \u003c\/p\u003e\u003cp\u003eSure, hedge funds have produced some of the greatest fortunes in recent years, but the shocking reality is that investors would have made more putting their money into treasury bills instead. And while hedge funds have proved to be serious moneymakers for those that manage them, investors themselves rarely reap the benefits. In \u003ci\u003eThe Hedge Fund Mirage: The Illusion of Big Money and Why It's Too Good to Be True\u003c\/i\u003e, hedge fund expert Simon Lack blows the lid off the secret world of this class of investments, teaching you everything you need to know to maximize your own returns. \u003c\/p\u003e\u003cp\u003eDrawing on an insider's view of hedge fund growth during the 1990s, a time when investors in the field did well in part because there were relatively few of them, \u003ci\u003eThe Hedge Fund Mirage\u003c\/i\u003e chronicles the history of the hedge fund, highlighting the many subtle and not-so-subtle ways that returns and risks are biased in favor of the fund manager, and how investors and allocators can redress this imbalance. Packed with information about the industry and what's wrong with it, the book steers you away from the traps that befall so many investors. Full of helpful pointers on how to really get the most out of your hedge fund investments, it encourages using new and emerging hedge fund managers whose returns are generally better, negotiating more assertively for stronger investor rights, and warns anyone putting their money in the hands of a manager to demand complete transparency at all times. \u003c\/p\u003e\u003cp\u003eHedge fund investors have had it tough in recent years, but that doesn't mean that there isn't money to be made. As the success of hedge fund managers shows, opportunities are there. The dilemma for investors is figuring out how to identify managers you can trust and learning the techniques to keep more of the money generated using your capital. \u003ci\u003eThe Hedge Fund Mirage\u003c\/i\u003e is here to help, turning the tables on conventional industry wisdom to put you, the investor, back in charge.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990257123557,"sku":"NP9781118164310","price":34.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118164310.jpg?v=1761787090","url":"https:\/\/k12savings.com\/es\/products\/the-hedge-fund-mirage-isbn-9781118164310","provider":"K12savings","version":"1.0","type":"link"}