A comprehensive guide to alternative investments and a valuable study companion for the CFA, CAIA, FRM and other professional examinations that include hedge fund investingThe 2nd Edition offers new material related to portfolio financing, how funds are sold, liquid alternatives, and the challenges faced when trying to value hedge fund management companies. This edition includes updated power point slides, and a companion workbook with an updated set of end of chapter problems and a revised set of over 150 test bank questions.
Hedge Fund Investing is a complete guide to alternative investments for students and professionals alike. Written to align with the CAIA curriculum, this book is much more than just an exam preparation resource—it's a fully comprehensive guide to hedge fund investing in today's market, designed to provide professionals with the deep understanding they need to operate effectively. Broad coverage under the alternative investment umbrella includes discussion about hedge funds, derivatives, investment banking, and commercial banking, with specific guidance toward trading, strategy, portfolio management, performance metrics, due diligence, and more. A full set of ancillary materials helps bring this book into the classroom, and provides rigorous reinforcement of the material presented in the text.
Alternative investment expertise has become central to the asset management and institutional investment community. This book facilitates clear understanding of the intricacies of the field and guides you through the practical skills needed to successfully navigate this diverse set of asset classes.
- Recognize hedge fund trends, flows, and characteristics
- Examine major hedge fund strategies and how they interact
- Learn the technical side of financing, settlement, and clearance
- Measure fund performance and optimize contributing factors
Hedge funds and other alternative investments are known for their high reward, but they also come with significant risk. The investment professional's role is to minimize these risks while maximizing reward, but the nuanced nature of these assets dramatically complicates the task. Hedge Fund Investing details every aspect to give you the deep and instinctual understanding you need to operate effectively within the alternative investment sphere.
About the Author
KEVIN R. MIRABILE is a clinical assistant professor of finance and business economics at Fordham University's Gabelli School of Business, where he teaches courses on finance, alternative investing, and hedge funds. During his more than thirty years in financial services, he has held senior executive positions at Larch Lane Advisors, Morgan Stanley, Daiwa Securities, and Barclays Capital. He is a Certified Public Accountant, a member of the Hedge Fund Association's Education Committee, and a member of the Greenwich Roundtable's Founders Council. He also holds a bachelor's degree from S.U.N.Y. Albany, a master's degree in international banking and finance from Boston University, and a doctorate in finance and economics from Pace University.
Table of Contents
About the Author xv
PART ONE Overview
CHAPTER 1 The Basics of Hedge Fund Investing 3
CHAPTER 2 Hedge Fund Strategies, Performance Measurement, and Risk 21
CHAPTER 3 Who Invests in Hedge Funds and Why? 39
CHAPTER 4 Industry Trends, Flows, and Characteristics 65
PART TWO Understanding the Strategies
CHAPTER 5 Global Macro Investing 87
CHAPTER 6 Equity-Oriented Styles 109
CHAPTER 7 Fixed-Income–Oriented Strategies 143
CHAPTER 8 Multistrategy Funds, Funds of Hedge Funds, and Replication Products 173
CHAPTER 9 Portfolio Financing and Secondary Market Trading 191
PART THREE Evaluating Individual Fund Risk and Reward
CHAPTER 10 Measuring Performance and Performance Persistence 213
CHAPTER 11 Impact of Fund Characteristics and Terms on Performance 233
CHAPTER 12 Performing Due Diligence on Specifi c Managers and Funds 247
CHAPTER 13 Evaluating the Roles of Service Providers 271
CHAPTER 14 Observations and Outlook 299
References and Additional Reading 319