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Book Description

Hedge Fund Secrets provides a needed complement to journalistic accounts of the hedge fund industry, to deepen the understanding of nonspecialist readers such as policy makers, journalists, and individual investors. The book is organized in modules to allow different readers to focus on the elements of this topic that most interest them. Its authors include a fund practitioner and a computer scientist (Balch), in collaboration with a public policy economist and finance academic (Romero).

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Contents
  5. Acknowledgments
  6. Part I The Basics
    1. Chapter 1 Introduction
      1. Bio: Julian Robertson, Tiger Management
    2. Chapter 2 So You Want to Be a Hedge Fund Manager
    3. Chapter 3 An Illustrative Hedge Fund Strategy: Arbitrage
      1. Bio: Steven Cohen, SAC Capital
    4. Chapter 4 Market-Making Mechanics
    5. Chapter 5 Value Investing
    6. Chapter 6 Introduction to Company Valuation
  7. Part II Investing Fundamentals: CAPM and EMH
    1. Chapter 7 How Valuation Is Used by Hedge Funds
      1. Bio: David Einhorn, Greenlight Capital
    2. Chapter 8 Framework for Investing: The Capital Asset Pricing Model (CAPM)
    3. Chapter 9 The Efficient Market Hypothesis (EMH)—Its Three Versions
    4. Chapter 10 The Fundamental Law of Active Portfolio Management
      1. Bio: Jim Simons, Renaissance Technologies
  8. Part III Market Simulation and Portfolio Construction
    1. Chapter 11 Modern Portfolio Theory: The Efficient Frontier and Portfolio Optimization
      1. Bio: Ray Dalio, Bridgewater
    2. Chapter 12 Event Studies
    3. Chapter 13 Overcoming Data Quirks to Design Trading Strategies
    4. Chapter 14 Data Sources
      1. Bio: Barton Biggs, Fairfield and Traxis Partners
    5. Chapter 15 Backtesting Strategies
      1. Bio: Michael Steinhardt, Steinhardt Partners
  9. Part IV Case Study and Issues
    1. Chapter 16 Hedge Fund Case Study: Long Term Capital Management (LTCM)
      1. Bio: George Soros, Quantum Fund
    2. Chapter 17 Opportunities and Challenges for Hedge Funds
  10. Teaching Cases
  11. Resources...
  12. Glossary
  13. Summary
  14. Index
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