{"product_id":"market-neutral-investing-isbn-9781576600375","title":"Market Neutral Investing","description":"In today's volatile markets, managing risk is more important than ever. Investors are looking for downside protection while maintaining good returns--and market-neutral investing has become one of the hottest methods to meet that need. In this book, industry expert Joseph G. Nicholas explores new approaches to return enhancement and risk reduction through market-neutral strategies.\u003cbr\u003e \u003cbr\u003e Market-neutral investments are attractive because they have produced substantially better risk-adjusted returns than the market during the past ten years. The complexities created by the combination of longs, shorts, and leverage, however, make market-neutral strategies very different from conventional investments. Getting to know how these strategies work involves breaking them down into their basic components and then examining how those parts interact as a system with specific behavior characteristics. This book examines eight key strategies, revealing the source of their past returns and giving the investor tools with which to measure the possibility of repeat performance.\u003cbr\u003e Nicholas draws extensively on his company's database of over three thousand hedge funds and from the daily portfolio analysis conducted for hedge fund portfolios. He has also incorporated extensive input and actual investment examples provided by managers and practitioners of each of the strategies discussed in the book.\u003cbr\u003e \u003cbr\u003e This is the one book that looks at market-neutral strategies head-on, assessing those that have worked and some notable ones that have failed--and explaining why. Clear, insightful, and illustrated with numerous charts and graphs, \u003ci\u003eMarket-Neutral Investing\u003c\/i\u003e is an invaluable guide for professional investors.  \u003ci\u003eAcknowledgments.\u003cbr\u003e Foreword.\u003cbr\u003e Introduction.\u003cbr\u003e \u003cbr\u003e \u003c\/i\u003e\u003cb\u003eChapter 1: Investing in Relationships.\u003cbr\u003e \u003c\/b\u003eWhat Is Market Neutral?\u003cbr\u003e Basic Concepts.\u003cbr\u003e Relationship Investing.\u003cbr\u003e Understanding Market-Neutral Approaches.\u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 2: Developments in the Hedge Fund Industry.\u003cbr\u003e \u003c\/b\u003eHedge Fund Industry Assets.\u003cbr\u003e Hedge Fund Investors.\u003cbr\u003e Hedge Fund Strategies.\u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 3: Making an Investment in Market-Neutral Strategies.\u003cbr\u003e \u003c\/b\u003eLinear Analysis of Returns.\u003cbr\u003e Reducing Exposure to Risk.\u003cbr\u003e Market-Neutral and Hedged Strategies.\u003cbr\u003e Convertible Arbitrage.\u003cbr\u003e Fixed-Income Arbitrage.\u003cbr\u003e Mortgage-Backed Securities Arbitrage.\u003cbr\u003e Merger Arbitrage.\u003cbr\u003e Equity Hedge.\u003cbr\u003e Equity Market-Neutral and Statistical Arbitrage.\u003cbr\u003e Relative Value Arbitrage.\u003cbr\u003e Achieving Superior Risk-Adjusted Returns.\u003cbr\u003e Assessing the Risks.\u003cbr\u003e Transparency.\u003cbr\u003e Focusing on the Underlying Strategies.\u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 4: Convertible Arbitrage.\u003cbr\u003e \u003c\/b\u003eConvertible Bond Valuation.\u003cbr\u003e Statistical Advantage.\u003cbr\u003e Convertible Valuation Components.\u003cbr\u003e Convertible Arbitrage Approaches.\u003cbr\u003e Quantitative Screens.\u003cbr\u003e Kinds of Hedges.\u003cbr\u003e Setting Up a Market-Neutral Hedge.\u003cbr\u003e Setting up a Bullish Hedge.\u003cbr\u003e Setting up a Bearish Hedge.\u003cbr\u003e Risks and Risk Control.\u003cbr\u003e Fundamental Analysis.\u003cbr\u003e Hedge Analysis.\u003cbr\u003e Portfolio Construction.\u003cbr\u003e Liquidity.\u003cbr\u003e Leverage.\u003cbr\u003e Source of Return.\u003cbr\u003e Convertible Bond Market History.\u003cbr\u003e Recent Growth and Developments in Convertible Arbitrage.\u003cbr\u003e Performance in Adverse Market Conditions.\u003cbr\u003e Historical Examples.\u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 5: Fixed-Income Arbitrage.\u003cbr\u003e \u003c\/b\u003eFixed-Income Arbitrage Approaches.\u003cbr\u003e Basis Trades.\u003cbr\u003e Asset Swaps.\u003cbr\u003e TED Spreads.\u003cbr\u003e Yield Curve Arbitrage.\u003cbr\u003e Relative Value Trades.\u003cbr\u003e Risks and Risk Control.\u003cbr\u003e Risks.\u003cbr\u003e Measuring and Controlling Interest Rate Risk.\u003cbr\u003e Sources of Return.\u003cbr\u003e Financing.\u003cbr\u003e Repurchase Agreements.\u003cbr\u003e Technology.\u003cbr\u003e Liquidity.\u003cbr\u003e Events.\u003cbr\u003e Manager Skill and Hard Work.\u003cbr\u003e Growth and Recent Developments in Fixed-Income Arbitrage.\u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 6: Mortgage-Backed Securities Arbitrage.\u003cbr\u003e \u003c\/b\u003eMortgage-Backed Structures or Sectors.\u003cbr\u003e (Types of MBS Instruments).\u003cbr\u003e Mortgage-Backed Securities’ Evolution.\u003cbr\u003e Pass-Throughs.\u003cbr\u003e Basic Collateralized Mortgage Obligations (CMOs).\u003cbr\u003e CMO Tranches.\u003cbr\u003e Valuation Methods.\u003cbr\u003e Option-Adjusted Spreads.\u003cbr\u003e Information Systems.\u003cbr\u003e Risks and Risk Control.\u003cbr\u003e Duration.\u003cbr\u003e Effective and Partial Duration.\u003cbr\u003e Parallel and Rotational Shifts of the Yield Curve.\u003cbr\u003e Convexity.\u003cbr\u003e Prepayment Duration.\u003cbr\u003e Leverage.\u003cbr\u003e Pricing.\u003cbr\u003e Source of Return.\u003cbr\u003e Valuation Models.\u003cbr\u003e Leverage.\u003cbr\u003e Liquidity.\u003cbr\u003e Financing.\u003cbr\u003e Hedging Techniques.\u003cbr\u003e Recent Developments in MBS Arbitrage.\u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 7: Merger Arbitrage.\u003cbr\u003e \u003c\/b\u003eMerger Arbitrage Approaches.\u003cbr\u003e Cash Mergers or Tender Offers.\u003cbr\u003e Stock Swap Mergers.\u003cbr\u003e Stock Swap Mergers with a Collar.\u003cbr\u003e Multiple Bidder Situations.\u003cbr\u003e Leveraged Buyouts and Hostile Takeovers.\u003cbr\u003e Risks.\u003cbr\u003e Event Risk.\u003cbr\u003e Deal Flow.\u003cbr\u003e Liquidity.\u003cbr\u003e Risk Control.\u003cbr\u003e Diversification.\u003cbr\u003e Leverage.\u003cbr\u003e Source of Return.\u003cbr\u003e Growth and Recent Developments in.\u003cbr\u003e Merger Arbitrage.\u003cbr\u003e Deal Flow and Other Factors Affecting Volume.\u003cbr\u003e Stress Period: The Third Quarter of 1998.\u003cbr\u003e Returns.\u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 8: Equity Hedge.\u003cbr\u003e \u003c\/b\u003eInvestment Themes and Fundamental Analysis.\u003cbr\u003e Investment Themes.\u003cbr\u003e Fundamental Analysis.\u003cbr\u003e Equity Hedge Approaches.\u003cbr\u003e Quantitative vs. Qualitative Mix.\u003cbr\u003e Universe of Stocks.\u003cbr\u003e Style.\u003cbr\u003e Liquidity.\u003cbr\u003e Net Market Exposure.\u003cbr\u003e Research.\u003cbr\u003e Leverage.\u003cbr\u003e Risks and Risk Control.\u003cbr\u003e Stock-Picking Risk.\u003cbr\u003e Market Risk.\u003cbr\u003e Universe of Stocks.\u003cbr\u003e Diversification.\u003cbr\u003e Sell Disciplines.\u003cbr\u003e Leverage.\u003cbr\u003e Source of Return.\u003cbr\u003e Recent Growth and Developments in Equity Hedge Investing.\u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 9: Equity Market-Neutral and Statistical Arbitrage.\u003cbr\u003e \u003c\/b\u003eEquity Market-Neutral Approaches.\u003cbr\u003e Initial Screen: Universe of Investable Stocks.\u003cbr\u003e Stock Selection.\u003cbr\u003e Mean Reversion-Based Approaches.\u003cbr\u003e Risks and Risk Control.\u003cbr\u003e Portfolio Construction and Optimization.\u003cbr\u003e Manager Styles-Putting It All Together.\u003cbr\u003e Source of Return.\u003cbr\u003e Recent Growth and Developments in Equity Market-Neutral Investing.\u003cbr\u003e \u003cbr\u003e \u003cb\u003eChapter 10: Relative Value Arbitrage.\u003cbr\u003e \u003c\/b\u003eRelative Value Arbitrage Approaches.\u003cbr\u003e Convertible Arbitrage.\u003cbr\u003e Merger Arbitrage.\u003cbr\u003e Equity Statistical Arbitrage.\u003cbr\u003e Pairs Trading.\u003cbr\u003e Fixed-Income Arbitrage.\u003cbr\u003e Options and Warrants Trading.\u003cbr\u003e Capital Structure Arbitrage.\u003cbr\u003e Regulation D (Structured Discount Convertible) Arbitrage.\u003cbr\u003e Risks and Risk Control.\u003cbr\u003e Strategy Mix.\u003cbr\u003e Strategy Weightings.\u003cbr\u003e Source of Return.\u003cbr\u003e Growth and Recent Developments in Relative Value Arbitrage.\u003cbr\u003e \u003cbr\u003e \u003ci\u003eAfterword.\u003cbr\u003e Glossary.\u003cbr\u003e Index.\u003c\/i\u003e  \u003cp\u003e\u003cb\u003eJOSEPH G. NICHOLAS, J.D.\u003c\/b\u003e, is founder and chairman of HFR Asset Management, LLC, a leading fund of funds, and Hedge Fund Research, Inc., the industry's leading supplier of hedge fund data. The author of \u003ci\u003eInvesting in Hedge Funds\u003c\/i\u003e (Bloomberg Press, 2005) and \u003ci\u003eHedge Fund of Funds Investing\u003c\/i\u003e (Bloomberg Press, 2004), Mr. Nicholas is a frequent lecturer and media expert on topics relating to alternative investments.   \u003c\/p\u003e\u003cp\u003e\u003cb\u003eMarket-Neutral Investing\u003cbr\u003e Long\/Short Hedge Fund Strategies\u003c\/b\u003e \t \u003c\/p\u003e\u003cp\u003e\"Joseph Nicholas has used his years at the center of the hedge fund industry to create a comprehensive road map to market-neutral investing.\"\u003cbr\u003e \u003cb\u003eGENE T. PRETTI\u003c\/b\u003e President and Chief Investment Officer Zazove Associates LLC \t \u003c\/p\u003e\u003cp\u003e\u003csmall\u003eIN TODAY'S \u003c\/small\u003evolatile markets, managing risk is more important than ever. Investors are looking for downside protection while maintaining good returns—and market-neutral investing has emerged as a leading method to meet that need. In this book, industry expert Joseph G. Nicholas explores new approaches to return enhancement and risk reduction through market-neutral strategies. \u003c\/p\u003e\u003cp\u003eMarket-neutral investments are attractive because they have produced substantially better risk-adjusted returns than the market during the past ten years. The complexities created by the combination of longs, shorts, and leverage, however, make market-neutral strategies very different from conventional investments. Getting to know how these strategies work involves breaking them down into their basic components and then examining how those parts interact as a system with specific risk and reward characteristics. This invaluable guide zeros in on eight key strategies, revealing the source of their past returns and giving the investor tools with which to measure the possibility of repeat performance. \t \u003c\/p\u003e\u003cp\u003eNicholas draws extensively on his company's database of more than four thousand hedge funds and from HFR's daily portfolio analysis conducted for hedge fund portfolios. He has also incorporated extensive input and actual investment examples provided by managers and practitioners of each of the strategies discussed. \u003c\/p\u003e\u003cp\u003eThis is a book that looks at market-neutral strategies head on, assessing those that have worked and some notable ones that have failed—and explaining why. Clear, insightful, and illustrated with numerous charts and graphs, \u003ci\u003eMarket-Neutral Investing\u003c\/i\u003e is an essential resource for professional investors.   \u003c\/p\u003e\u003cp\u003e\"Market-neutral investing ...is the fastest growing segment within the global hedge funds industry. Nicholas offers ...valuable insights into eight specific market-neutral strategies that are in growing demand by both institutional and private investors. ...This is a milestone publication, which broadens our knowledge and investment horizons— an invaluable reference tool for global portfolio managers, the international investor community, and industry service providers.\"\u003cbr\u003e \u003cb\u003e—\u003csmall\u003eSOHAIL JAFFER\u003c\/small\u003e, Chairman Alternative Investment Management Association (AIMA)\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"Sound, practical advice from one of the leading researchers in the hedge fund industry. High-net-worth investors, institutional investors, and their advisors would be well advised to develop a working knowledge of the topics in this book.\"\u003cbr\u003e \u003cb\u003e—\u003csmall\u003eVERNON C. SUMNICHT\u003c\/small\u003e, \u003csmall\u003eM.B.A., CFP, \u003c\/small\u003ePresident Sumnicht \u0026amp; Associates and Sumnicht Hedge Fund Advisors, LLC\u003c\/b\u003e \t \u003c\/p\u003e\u003cul\u003e \u003cli\u003eTHE WHAT, WHEN, AND WHY OF MARKET-NEUTRAL STRATEGIES\u003c\/li\u003e \u003cli\u003eCLEAR EXPLANATIONS OF SPECIFIC APPROACHES\u003c\/li\u003e \u003cli\u003eTHE RISKS AND MERITS OF EIGHT STRATEGIES\u003c\/li\u003e \u003cli\u003eHOW TO BUILD A MARKET-NEUTRAL INVESTMENT PORTFOLIO\u003c\/li\u003e \u003cli\u003eADVICE AND INSIGHT FROM THE FOREMOST PRACTITIONERS OF MARKET-NEUTRAL STRATEGIES\u003c\/li\u003e \u003c\/ul\u003e   \"Market-neutral investing . . . is the fastest growing segment within the global hedge funds industry. Nicholas offers . . . \u003cb\u003evaluable insights into eight specific market-neutral strategies\u003c\/b\u003e that are in growing demand by both institutional and private investors. . . . \u003cb\u003eThis is a milestone publication\u003c\/b\u003e, which broadens our knowledge and investment horizons--\u003cb\u003ean invaluable reference tool for global portfolio managers, the international investor community, and industry service providers.\"\u003cbr\u003e \u003c\/b\u003e- \u003cb\u003eSohail Jaffer\u003cbr\u003e \u003c\/b\u003eChairman, Alternative Investment Management Association (AIMA)","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47989574074597,"sku":"NP9781576600375","price":89.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781576600375.jpg?v=1761784655","url":"https:\/\/k12savings.com\/products\/market-neutral-investing-isbn-9781576600375","provider":"K12savings","version":"1.0","type":"link"}