{"product_id":"a-guide-to-starting-your-hedge-fund-isbn-9780470519400","title":"A Guide to Starting Your Hedge Fund","description":"\u003cp\u003e\u003cb\u003eSuccessful hedge fund investing begins with well-informed strategy\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eA Guide to Starting Your Hedge Fund\u003c\/i\u003e is a practical, definitive \"how-to\" guide, designed to help managers design and launch their own funds, and to help investors select and diligence new funds. The first book to examine the practical aspects of setting up and operating funds with a focus on energy commodity markets, this book scrutinises the due diligence process and comprehensively reviews the opportunities and risks of all energy commodity markets as hedge fund investments. Extensive planning and strategy advice prove invaluable to prospective fund managers and investors alike, and detailed discussion of the markets' constraints help inform procedural decisions. Readers gain insight into practical matters including legal and commercial structures, due diligence, fund raising, operations, and more, allowing them to construct a concrete investment plan before ever touching a penny.\u003c\/p\u003e \u003cp\u003eAsset managers are looking to energy commodities to provide attractive uncorrelated – if volatile – returns. These high returns, however, are accompanied by high risk. Few investors have experience evaluating these investment opportunities, and few prospective fund managers understand the market fundamentals and their associated risks. This book provides the answers sorely lacking in hedge fund literature, giving investors and fund managers the background they need to make smarter decisions.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eUnderstand the markets' structures, opportunities, and risks\u003c\/li\u003e \u003cli\u003eDevelop a comprehensive, well-informed investment strategy\u003c\/li\u003e \u003cli\u003eConduct thorough due diligence with a detailed plan\u003c\/li\u003e \u003c\/ul\u003e \u003cul\u003e \u003cli\u003eExamine the practical aspects of fund raising, legal and tax structure, and more\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eOil has long been traded by hedge funds, but electricity, the fuels that generate electricity, and the environmental products like emissions allowances and weather derivatives have become the new \"hot\" investment strategies. These high returns come with higher risk, but \u003ci\u003eA Guide to Starting Your Hedge Fund\u003c\/i\u003e ensures participants have essential information at their disposal.\u003c\/p\u003e \u003cp\u003eAcknowledgements ix\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I Why This Book? 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy This Book? 3\u003c\/p\u003e \u003cp\u003eThe Big Picture and Energy Commodities 4\u003c\/p\u003e \u003cp\u003eCase Study: Amaranth Advisors 5\u003c\/p\u003e \u003cp\u003eLayout 6\u003c\/p\u003e \u003cp\u003eThe Beginning 7\u003c\/p\u003e \u003cp\u003eBibliography 7\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II the Basics 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 What Is a Hedge Fund? 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eI Already Know What a Hedge Fund Is 11\u003c\/p\u003e \u003cp\u003eA Little Bit of History 12\u003c\/p\u003e \u003cp\u003eSo What Is a Hedge Fund? 13\u003c\/p\u003e \u003cp\u003eHedge Funds (Un)Defined 16\u003c\/p\u003e \u003cp\u003eThe Growth of the Hedge Fund Industry 18\u003c\/p\u003e \u003cp\u003eHedge Fund + Commodities = Commodities Corporation 19\u003c\/p\u003e \u003cp\u003eWhither Energy and Commodity Hedge Funds? 20\u003c\/p\u003e \u003cp\u003eMoving Forward 20\u003c\/p\u003e \u003cp\u003eBibliography 21\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 What Are Energy Commodities? 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 23\u003c\/p\u003e \u003cp\u003eWhat Are Energy Commodities? 23\u003c\/p\u003e \u003cp\u003eThe Regionality of Electricity 25\u003c\/p\u003e \u003cp\u003eWhy Are Energy Commodities Attractive for Investors? 27\u003c\/p\u003e \u003cp\u003eA Complex, Solvable Problem 30\u003c\/p\u003e \u003cp\u003eDrivers of Complexity 31\u003c\/p\u003e \u003cp\u003eConditions for Solvability 36\u003c\/p\u003e \u003cp\u003ePrincipal Sources of Opportunity and Risk 39\u003c\/p\u003e \u003cp\u003eBibliography 46\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Trading and Investing in Energy Commodities 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBottom-up and Top-down 48\u003c\/p\u003e \u003cp\u003eTrading + Managing a Business = Successful Hedge Fund 49\u003c\/p\u003e \u003cp\u003eThe Edge? 50\u003c\/p\u003e \u003cp\u003eTrading Energy Commodities 52\u003c\/p\u003e \u003cp\u003eBasic Financial Knowledge for Commodities 55\u003c\/p\u003e \u003cp\u003eConclusion 56\u003c\/p\u003e \u003cp\u003eBibliography 59\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III Starting the Journey 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 The Business Plan: Implications and Applications 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 63\u003c\/p\u003e \u003cp\u003eObjectives and Uses of a Hedge Fund Business Plan 64\u003c\/p\u003e \u003cp\u003eConclusion 71\u003c\/p\u003e \u003cp\u003eBibliography 72\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Laws, Contracts, and Lawyers 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDon’t Kill Your Lawyer 73\u003c\/p\u003e \u003cp\u003eLegal Basics for Funds 74\u003c\/p\u003e \u003cp\u003eMaster–Feeder Fund Structures 77\u003c\/p\u003e \u003cp\u003eSide-Pocket Structures 81\u003c\/p\u003e \u003cp\u003eThe Firm 84\u003c\/p\u003e \u003cp\u003eThe Investment Advisory Agreement 86\u003c\/p\u003e \u003cp\u003eContents vii\u003c\/p\u003e \u003cp\u003eAttributes and Variations of the Investment Management Enterprise 87\u003c\/p\u003e \u003cp\u003eStructural Design Decisions 88\u003c\/p\u003e \u003cp\u003eCase Study: Complex Tax Structuring 98\u003c\/p\u003e \u003cp\u003eBe Nice To Your Lawyer 103\u003c\/p\u003e \u003cp\u003eBibliography 104\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Service Providers 105\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 105\u003c\/p\u003e \u003cp\u003eLong-Term Relationship: Service Providers and Marriage 106\u003c\/p\u003e \u003cp\u003eService Providers: Who and Where? 107\u003c\/p\u003e \u003cp\u003eNegotiate, Negotiate, Negotiate 108\u003c\/p\u003e \u003cp\u003eService? 110\u003c\/p\u003e \u003cp\u003eHow to Choose? 112\u003c\/p\u003e \u003cp\u003eFinal Thoughts 113\u003c\/p\u003e \u003cp\u003eBibliography 113\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart IV Running the Business 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Fundraising 117\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStrategic Investor Portfolio Design 118\u003c\/p\u003e \u003cp\u003eStart-up Lifecycle Analysis and Investor Portfolio Development 127\u003c\/p\u003e \u003cp\u003eInvestor Acquisition – Marketing 130\u003c\/p\u003e \u003cp\u003eTools for Marketing and Key Marketing Documents 140\u003c\/p\u003e \u003cp\u003eMarketing Documentation 143\u003c\/p\u003e \u003cp\u003eInvestor Maintenance – Investor Relations 152\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Operations and Infrastructure 155\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 155\u003c\/p\u003e \u003cp\u003eInfrastructure and Technology 158\u003c\/p\u003e \u003cp\u003eBibliography 160\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart V Final Thoughts 161\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Investing in Energy Commodity Hedge Funds 163\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAsset Allocation: Portfolio Building Basics 163\u003c\/p\u003e \u003cp\u003eAsset Allocation: Understanding Different Strategies 167\u003c\/p\u003e \u003cp\u003eChecklist for Investing in Energy Commodity Hedge Funds 170\u003c\/p\u003e \u003cp\u003eBibliography 171\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Quo Vadis 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBibliography 179\u003c\/p\u003e \u003cp\u003eAppendix A Sample Business Plan Outline 181\u003c\/p\u003e \u003cp\u003eAppendix B Outline of a Confidential Explanatory Memorandum: Sample Offshore Feeder Ltd 183\u003c\/p\u003e \u003cp\u003eAppendix C Sample Due Diligence Questionnaire Outline 189\u003c\/p\u003e \u003cp\u003eIndex 195\u003c\/p\u003e \u003cp\u003e\u003cb\u003eErik Serrano Berntsen\u003c\/b\u003e is CEO of Stable Asset Management. Prior to Stable, he was a Consultant with Bain \u0026amp; Co., where he consulted on private equity deal studies as well as a broad spectrum of corporate engagements. During his time at Bain he was also an advisor to the Prince’s Trust, including advising on the UK-wide Volunteer Strategy initiative. Erik holds a Bachelor of Arts in Politics, Philosophy and Economics from Keble College, University of Oxford, and a Masters of Business Administration with honours and a Concentration in Finance from the University of Chicago Booth School of Business.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eJohn Thompson\u003c\/b\u003e is Principal of Stable Asset Management. Prior to Stable, he was a senior executive of Enron Europe. He has held regulatory affairs and market operations management roles with Wintershall (BASF) and was regional financial coordinator for Milestone Petroleum (Burlington Resources). John began his energy career in the oil and gas fields of the Rocky Mountains and later as a well-site mud-logging engineer. John has held several Directorships, including Member of the Supervisory Board of the European Energy Exchange (EEX). John also holds a Masters of Business Administration from the University of Chicago Booth School of Business. \u003c\/p\u003e\u003cp\u003eStable Asset Management is a hedge fund seeding firm that backs top trading talent globally to build institutional quality asset management firms.  \u003c\/p\u003e\u003cp\u003e\u003ci\u003eA Guide to Starting Your Hedge Fund\u003c\/i\u003e is a practical and definitive guide that offers investors and fund managers the information and tools they need to select, design, and launch their own funds. Written by Erik Serrano Berntsen and John Thompson – hedge fund and energy industry experts – this important resource examines the practical aspects of setting up and operating funds, giving additional insight into the burgeoning sector of energy commodity markets. The authors scrutinise the due diligence process and offer an intelligent review of energy hedge fund investment opportunities and risks. This important text also includes a wealth of planning and strategic advice that will prove invaluable to prospective fund managers and investors.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eA Guide to Starting Your Hedge \u003c\/i\u003eFund gives prospective fund managers an accessible approach for mastering the key elements necessary if they are to develop a successful hedge fund. Berntsen and Thompson put the focus on a proven method for creating an effective overall strategy. They reveal how to create a sound business plan, outline the critical legal requirements, and show what it takes to work well with service providers, such as prime brokers and administrators. The book explores the fundamentals of running an investment management firm, includes information on fundraising techniques, and clearly shows how to administer the daily operations of a hedge fund. \u003c\/p\u003e\u003cp\u003eSerrano Berntsen and Thompson offer their in-the-trenches wisdom and sound advice that investors should consider before adding an energy commodity hedge fund to their portfolio. The authors also include their insights into the future of energy commodity hedge funds. Designed as a practical resource, the book contains an outline of a sample business plan, offering memorandum, and a helpful due diligence questionnaire. \u003c\/p\u003e\u003cp\u003eWhilst oil has long been traded by hedge funds, natural gas, electricity, and the environmental products like emissions allowances and weather derivatives are the new and highly desirable investment strategies. These high returns come with major risk, \u003ci\u003eA Guide to Starting Your Hedge Fund\u003c\/i\u003e gives savvy investors and fund managers the information they need to make smart decisions.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988630061285,"sku":"NP9780470519400","price":150.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470519400.jpg?v=1761781041","url":"https:\/\/k12savings.com\/products\/a-guide-to-starting-your-hedge-fund-isbn-9780470519400","provider":"K12savings","version":"1.0","type":"link"}