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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
Master the art of hedge fund investment in a high-interest-rate environment
In the newly updated The Little Book of Hedge Funds by celebrated financier Anthony Scaramucci, you'll find a crucial roadmap through the intricate world of hedge funds in the aftermath of significant financial shifts. Scaramucci breaks down complex investment strategies into understandable insights, adapting to the high-stakes environment of post-2008 and post-Covid economics. This edition is tailored for anyone aiming to grasp the pivotal changes and seize investment opportunities in the evolving landscape of hedge funds.
Detailing the transformation from a decade of near-zero interest rates to an era of higher rates and inflation, this book explores how hedge funds have adapted and what investors must know to thrive. Through expert analysis, interviews with legendary investors, and forward-looking predictions, Scaramucci provides a comprehensive view on managing investments with higher risks, choosing the right fund managers, and understanding the future trajectory of hedge funds.
In the book, you'll:
- Learn how the hedge fund industry has evolved through significant economic shocks
- Gain strategies for selecting hedge fund managers in a higher risk environment
- Understand the potential future directions of hedge funds and how they may impact investors
The Little Book of Hedge Funds is an essential guide for navigating the complexities of hedge funds in today's financial climate. Whether you're a novice investor, a seasoned financier, or a professional within the financial sector, this book equips you with the knowledge to make informed decisions and capitalize on hedge fund investments.
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Seitenzahl: 288
Veröffentlichungsjahr: 2024
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Table of Contents
Cover
Table of Contents
Title Page
Copyright
Dedication
Foreword
Introduction: Goin' through Changes
Seeing the Forest from the Trees
Lifting the Veil
Chapter One: What Is a Hedge Fund?
Comparing Apples to Oranges
Regulation … or Lack Thereof
Size: The Achilles' Heel
Manager Fee: The Infamous Two‐and‐Twenty
Investment Strategies: The Long and the Short of It
Liquidity: Swimming in Pools of Money
So, Do They Actually Hedge?
The Proof Is in the Pudding
Chapter Two: The Parlor Cars of the Gravy Train
Inside the Olive Pit
The Secret Is in the Sauce
And the Beat Moves On…
The Revenge of the Nerds
And Now for the Not‐Quite‐as‐Successful
Emerging from the Ashes
Lost and (Maybe) Found…?
Chapter Three: Accessing the Inaccessible
It's All in the Name
The Institutional Invasion
Take Out Your Measuring Stick
What It Boils Down To …
Chapter Four: Heads We Win; Tails You Lose
Keeping Up with the Joneses
The Ends Justify the Means
Even Cowboys Have the Blues
Chapter Five: The Alpha Game
The Alpha‐Beta Song
Another Theory, Another Definition
Driving with One Foot on the Brake
Putting Theory into Practice
A Word of Caution
Sometimes Diversification Just Ain't Enough
The Bottom Line
Chapter Six: Ironing Out Inefficiencies
A Kid in a Candy Store
Times, They Are a Changing
Living on the Edge
Putting Theory into Practice
The Efficiency of Inefficiency
The Fact of the Matter …
Chapter Seven: A Balancing Act
Long/Short Equity—Borrowing from Peter to Pay Paul
Relative Value—Two of a Kind … but Different
Event Driven—One Man's Loss Is Another Man's Gain
Directional
Chapter Eight: Private Parts
Case Study: The Mooch Motel
Getting Serious
Private Equity…It's
Everywhere
A Tale of Two Alternative Assets
A
Real
Case Study: Dell Computers
The Alternative Alternatives
Chapter Nine: If You Can't Beat 'Em, Join 'Em
Stop Right There!
Manager Selection
The Screening Process
The Never‐Ending Process
Filling in the Data
Portfolio Construction
Stay Alert … It's Your Money
Chapter Ten: The Men Behind the Curtains
A Quick History Lesson
More than Just a Middleman
The Specifics
Your Dream Team
The Pluses…
… And the Minus
Chapter Eleven: From Wall Street to Park Avenue
Wall Street's Mass Migration
Only the Strongest Survive
Inside the Mind of a Super Capitalist
A Quick Pop Quiz
Scoring a Job at a Hedge Fund
A Final Few Words: 15 Things I Would Do If I Were You
Conclusion: The Shape of Things to Come
Appendix: Due Diligence Questionnaire
I. Scope (What to Assess)
II. Process
Notes
Introduction
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 6
Chapter 7
Chapter 8
Chapter 10
Chapter 11
Acknowledgments
End User License Agreement
List of Tables
Chapter 10
Table 10.1 Comparable Performance: HFRI Fund of Funds vs. S&P 500 TR
1
...
List of Illustrations
Chapter 7
Figure 7.1 Hedge fund strategies.
Guide
Cover
Table of Contents
Title Page
Copyright
Dedication
Foreword
Introduction: Goin' through Changes
Begin Reading
Conclusion: The Shape of Things to Come
Appendix: Due Diligence Questionnaire
Notes
Acknowledgments
End User License Agreement
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Little Book Big Profits Series
In the Little Book series, the brightest icons in the financial world write on topics that range from tried‐and‐true investment strategies to tomorrow's new trends. Each book offers a unique perspective on investing, allowing the reader to pick and choose from the very best in investment advice today.
Books in the Little Book series include:
The Little Book of Investing Like the Pros by Pearl and Rosenbaum
The Little Book That Still Beats the Market by Joel Greenblatt
The Little Book That Saves Your Assets by David M. Darst
The Little Book That Builds Wealth by Pat Dorsey
The Little Book That Makes You Rich by Louis Navellier
The Little Book of Common Sense Investing by John C. Bogle
The Little Book of Value Investing by Christopher Browne
The Little Book of Big Dividends by Charles B. Carlson
The Little Book of Main Street Money by Jonathan Clements
The Little Book of Trading by Michael W. Covel
The Little Book of Valuation by Aswath Damodaran
The Little Book of Economics by Greg Ip
The Little Book of Sideways Markets by Vitaliy N. Katsenelson
The Little Book of Big Profits from Small Stocks by Hilary Kramer
The Little Book of Currency Trading by Kathy Lien
The Little Book of Bull's Eye Investing by John Mauldin
The Little Book of Emerging Markets by Mark Mobius
The Little Book of Behavioral Investing by James Montier
The Little Book of Hedge Funds by Anthony Scaramucci
The Little Book of Bull Moves by Peter D. Schiff
The Little Book of Alternative Investments by Stein and DeMuth
The Little Book of Bulletproof Investing by Ben Stein and Phil DeMuth
The Little Book of Commodity Investing by John R. Stephenson
The Little Book of the Shrinking Dollar by Addison Wiggin
The Little Book of Stock Market Profits by Mitch Zacks
The Little Book of Safe Money by Jason Zweig
The Little Book of Zen Money by The Seven Dollar Millionaire
The Little Book of Picking Top Stocks by Martin S. Fridson
The Little Book of Robo Investing by Elizabeth MacBride and Quian Liu
The Little Book of Trading Options Like the Pros by David Berns and Michael Green
The Little Book of Impact Investing by Priya Parrish
The Litte Book of Market Myths by Ken Fisher, Lara W. Hoffmans and Chris Ciarmiello
THE LITTLE BOOK OF HEDGE FUNDS
What You Need to Know About Hedge Funds but the Managers Won’t Tell You
Second Edition
ANTHONY SCARAMUCCI
Copyright © 2025 by Anthony Scaramucci. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.Published simultaneously in Canada.
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Library of Congress Cataloging‐in‐Publication Data is Available:
ISBN 9781394286676 (Cloth)ISBN 9781394286683 (ePDF)ISBN 9781394286690 (ePub)
COVER DESIGN: PAUL MCCARTHY
As always to Deidre, AJ, Amelia,Anthony, Nick, and James
Foreword
AS A VETERAN OF the hedge fund industry with over three decades of experience, I've witnessed firsthand the evolution of alternative investments. From my early days trading currencies at Goldman Sachs to running Fortress Investment Group's macro fund, and now leading Galaxy Digital in the exciting world of digital assets, I've seen the landscape transform dramatically. That's why I'm thrilled to introduce this updated edition of Anthony Scaramucci's insightful book on hedge funds and the broader world of alternative assets. When Anthony first published this book in 2012, the industry was still finding its footing after the 2008 financial crisis. Fast‐forward to today, and we're navigating a completely different terrain.
The hedge fund world has expanded far beyond its traditional boundaries, embracing new strategies, technologies, and asset classes that were barely on the radar a decade ago. Anthony brings his trademark wit and candor to demystify this complex industry. Drawing on his extensive experience, he offers an insider's perspective on what it really takes to succeed in the high‐stakes world of hedge funds and alternative investments. What I appreciate most about Anthony's approach is how he breaks down key strategies, from long/short equity to global macro, while also delving into newer frontiers such as private credit, digital assets, and ESG investing.
One of the most significant changes since the book's first edition is the explosive growth of private markets. As Anthony details, private equity and private credit have become major players in the alternative investment space. The industry has evolved from simply buying distressed assets to actively shaping entire sectors of the economy. This shift has blurred the lines between hedge funds and private equity, with many firms now operating across both domains.
Another crucial development is the rise of quantitative strategies and artificial intelligence in investment management. Anthony does an excellent job explaining how these technologies are reshaping the industry, from high‐frequency trading to machine learning–driven portfolio optimization. As someone who's embraced technology in my own ventures, I can attest to the transformative power of these tools.
But this book isn't just about making money or leveraging the latest tech. Anthony also explores the human side of hedge funds—the drive, ambition, and relentless work ethic required to succeed in this competitive field. He doesn't shy away from discussing both the triumphs and pitfalls, something I've experienced firsthand throughout my career.
I particularly appreciate Anthony's insights on the changing regulatory landscape and its impact on the industry. From the Dodd‐Frank Act to more recent developments, he provides a clear‐eyed view of how hedge funds are adapting to increased scrutiny and compliance requirements.
As hedge funds continue to evolve in today's rapidly changing financial landscape, Anthony's book provides a timely examination of where the industry has been and where it's headed. His passion for this business shines through on every page, as does his commitment to educating investors on the potential benefits and risks of alternative investments.
Whether you're a seasoned pro or just starting out, you'll gain valuable knowledge from Anthony's analysis. He covers everything from the basics of hedge fund structures to advanced topics such as risk management and due diligence. I particularly enjoyed his case studies, which bring abstract concepts to life through real‐world examples.
In an era of unprecedented economic uncertainty, with challenges ranging from geopolitical tensions to climate change, understanding alternative investments has never been more crucial. Anthony's book provides a road map for navigating these complex waters, offering insights that are relevant to individual investors and institutional allocators alike.
I've known Anthony for years, and I can attest to his deep knowledge of the industry and his commitment to investor education. This book is a testament to that commitment, offering a comprehensive yet accessible guide to the world of hedge funds and alternative investments. I highly recommend this book to anyone looking to better understand the inner workings of hedge funds and the broader alternative investment landscape. Whether you're considering investing in these strategies or simply want to expand your financial knowledge, Anthony's insights will prove invaluable.
—Michael Novogratz
Introduction: Goin' through Changes
Hedge funds are the ultimate in today's stock market—the logical extension of the current gun‐slinging, go‐go cult of success.
—Peter Landau, “Hedge Funds: Wall Street's New Way to Make Money” (New York Magazine, 1968)
A LOT CAN CHANGE IN 12 years.
In the winter of 2012, when I first sat down to write a beginner's guide to the world of alternative assets, things were different. The top song in the world was Rolling in the Deep by Adele. The last Harry Potter movie was still in theaters. President Barack Obama, a former law school classmate of mine, was running for a second term in the White House, and I had just made headlines by asking him during a town hall when he and his administration were going to “stop beating up on Wall Street.”
(Google that if you ever want to see me get smacked around a little.)
Since then, we've lived through dozens of big market swings and a global pandemic. The guy from The Apprentice was president for four years. For a minute there, interest rates were as close to zero as they'd ever been, and as of this writing, they're higher than Snoop Dogg and Willie Nelson on top of Mount Everest. Drake and Kendrick Lamar are beefing. SkyBridge's AUM (assets under management) is down from its peak, which is fine with me, by the way. As we'll discuss in the pages to come, adaptability is key in the world of hedge funds, often referred to as “Wall Street's last bastion of secrecy, mystery, exclusivity, and privilege.” Managers like me design strategies meant to provide returns no matter the market environment. Sometimes, those strategies—such as the big stake I've taken in Bitcoin and other cryptocurrencies these past few years, which you can read all about in several premature obituaries of my career—take a long time to pay off.
But when we hit, we hit big. For example, in 2021, TCI Fund Management posted returns of 23.3%, significantly outperforming the market. Citadel also had a standout year, with returns of 26.3%. Unlike more traditional investment vehicles, which tend to provide steady, predictable returns that go up and down with the market, hedge funds strive to deliver superior returns with less volatility. Using complex strategies such as short selling, leverage, and derivatives, hedge funds can better adapt to bear markets than their counterparts in the mutual fund space. We tend to invest for the long term, using a big bag of financial tricks in an effort to help our clients make money no matter what is happening in the market at large.
What's in that bag, you ask?
In this fully updated and expanded edition of The Little Book of Hedge Funds (a book that was hailed upon its initial publication as “visionary,” “wonderful,” and “ahead of its time”),1 I'll tell you. I'll also discuss the changes that have occurred in the world of hedge funds over the past decade, a period that has included the rise of algorithmic trading, the COVID‐19 pandemic and the lockdowns that followed, and major geopolitical events such as Brexit and the US‐China trade war. Most importantly, we'll discuss how hedge funds can adapt to this new high‐interest‐rate environment, providing value to clients even as the market continues to deliver huge shocks to the industry.
In the 2012 edition of this book, I stuck with hedge funds. This time around, I'm going to branch out a little, delving into a few asset classes that have grown massively in the years since I published the first edition. We'll discuss the strange, secretive world of private equity, which involves high‐net‐worth individuals pooling their money to buy and restructure companies. We'll also touch on other alternative assets such as venture capital, real estate investment trusts (REITs), infrastructure investments, and many others.
Along the way, I'll fix (and sometimes examine) some of the bad predictions I made in the first edition, and I'll include some updated wisdom from luminaries in the world of alternative assets: Leon Cooperman of Omega Advisors, Theo Phanos of Capeview Capital, and Steve Tananbaum of GoldenTree Capital Management. I'll also update all my old references and tell some fresh stories about the wild worlds of Wall Street, Washington, and a few places in between.
If you're a college student interested in the world of alternative assets, you'll find key knowledge here. The same is true if you're a beginning analyst at a financial firm, or a mid‐level executive looking for pearls of wisdom you can pretend you've known for years. Even if you're a civilian who just finished binging Showtime's Billions, or you've always liked those fun, technical parts of Adam McKay's hilarious film The Big Short, you're apt to find a great deal in these pages that piques your interest.
For the next two hundred pages or so, I'll be your host—or, more accurately, your trusted resident advisor. For those of you who don't know, my name is Anthony Scaramucci, or just “Mooch” to my friends (which, if you've just purchased this book, now includes you). In 2005, I cofounded SkyBridge Capital Management, an alternative asset management firm, which, as mentioned previously, is running approximately $2.5 billion in total assets under management by investing in more than 20 different hedge fund managers. In 2008, at the height of the financial crisis, my partners and I founded the SkyBridge Alternatives (SALT) Conference, which has grown to become one of the premier conferences in the industry.
As the head of that conference, I have been privy to cloaked conversations among some of the most successful managers in the world of alternative assets. Some have become good friends. One of those people, Joe Dowling of the alternative investments behemoth Blackstone, was kind enough to write the foreword to this book, and several others will be quoted at length in the pages to come. Over the years, I have listened carefully to their views on the industry, observed how they have ironed out market inefficiencies through their dynamic use of alternative investment strategies, and studied the ancillary literature written on all manner of alternative assets.
What I've learned, primarily, is that some things never change. My beloved New York Mets will probably always struggle (and I'll always watch them play anyway). The smell of a nice pot of sauce cooking on Sunday will always fill me with joy. And hedge funds, my bread and butter for the past two decades, will, in my opinion, always provide a dynamic, lucrative complement to many investors' portfolios. To find out why, sit back and enjoy this newly updated Little Book.
After reading it, you will no longer have to shy away from conversations about accredited investors who allocate capital to hedge fund managers who take two‐and‐twenty by exploiting market inefficiencies through investment strategies (short, hedge, leverage—oh my!) that minimize risk while generating absolute returns … all in the quest for alpha. (Don't worry, you'll learn what all of this means in this book—just keep reading.)
Seeing the Forest from the Trees
Before we can delve into the money‐making secrets of hedge funds, we must first define the term. And yet, in keeping with the mysterious nature of hedge funds, there doesn't seem to be a universally accepted definition. Perhaps the reason why many experts differ on the exact definition stems back to the origins. Although we will have a detailed history lesson in Chapter Two, hedge funds earned their name because traditionally they literally hedged. Once upon a time in a faraway land, a journalist named Alfred Winslow (better known as A.W.) Jones began managing his portfolio by selecting securities to be both long and short through leverage, thus, creating a hedged portfolio.
Although some managers still hedge, many hedge funds do not. So what do they do? What do they all have in common?
There is no magic formula for defining the term, but since this is the hedge fund industry, I want you to imagine that you are back in biology or anatomy class, peering over a pig—the capitalist kind. That's right. It's time to travel back to high school. Picture it. Freshman year. Biology lab. Pig dissection day.
You are sitting on some uncomfortable wooden stool, trying to look all macho and act all cool in front of your hot lab partner, who is deathly afraid of dissecting the small, fetal pig that lies before you. You strap on your boxy goggles, pick up the scalpel, and open up the pig (of course all the while smiling at your attractive lab partner). As you make careful incision after incision, you begin to extrapolate vital components of the pig's anatomy. With every piece you discover, you are learning the sum of the pig's parts, which will ultimately provide you with a better understanding of the overall makeup of the animal.
The same technique is needed to define hedge funds. But instead of dissecting an animal, we are going to dissect the colloquial and controversial definitions presented over time by the experts.
Let's start with a technical definition provided by Jack Gain, president of the Managed Funds Association:
A pragmatic definition would be a private investment pool with a limited number of high‐net‐worth individual and institutional investors on the one hand and, on the other, a manager with the utmost flexibility.
Hmm … that definition doesn't say much, now does it? Besides, I've never been one for pragmatism. Let's keep moving.
According to the Alternative Investment Management Association's Roadmap to Hedge Funds:
A hedge fund constitutes an investment program whereby the managers or partners seek absolute returns by exploiting investment opportunities (taking risk) while protecting principal from financial loss. The first hedge fund was indeed a hedged fund.
Sounds like a good definition to me … but let's take it further. Let's push the scalpel around a bit more. In All About Hedge Funds, Robert A. Jaeger defines a hedge fund as:
An actively managed investment fund that seeks attractive absolute return. In pursuit of their absolute return objective, hedge funds use a wide variety of investment strategies and tools. Hedge funds are designed for a small number of large investors, and the manager of the fund receives a percentage of the profits earned by the fund.
Now we're getting somewhere, but this extrapolation is still missing something—firsthand knowledge from a legend in the industry. As such, we need to move our scalpel over the supercapitalist's heart so that we can see the following definition from legendary hedge fund manager Cliff Asness of AQR Capital. According to him, hedge funds are:
Investment pools that are relatively unconstrained in what they do. They are relatively unregulated (for now), charge very high fees, will not necessarily give you your money back when you want it, and will generally not tell you what they do. They are supposed to make money all the time, and when they fail at this, their investors redeem and go to someone else who has recently been making money. Every three or four years, they deliver a one‐in‐a‐hundred‐year flood.
Although I may be biased toward my talented friend Cliff—who, if he weren't running AQR, might be writing comedy sketches for Jimmy Fallon or, better yet, could replace Colin Jost on Saturday Night Live's “Weekend Update”—his humorous definition is chock‐full of vital information about hedge funds that completes the discovery process and enables us to fully learn the sum of a hedge fund's parts.
Now, although we may never agree on a universal definition of hedge fund, you will notice that all four of these definitions have a few terms in common. So let's put down that scalpel and start examining the extrapolated components so that we can form our own definition.
Alternative Asset Classification:
Hedge funds live in the unique world of alternative assets, which—as the name implies—are investment vehicles other than the traditional investments of stocks, bonds, cash, or real estate. Alternative assets include other kinds of assets such as commodities, options, currencies, collectibles, convertible bonds, and emerging market debt. Just as the term
hedge fund
lacks a clear definition, so do its alternative asset parents. So when you hear the words
alternative investments
just think of anything in the investment world that is an alternative to stocks, bonds, and real estate and that utilizes alternative trading strategies such as hedging and shorting (don't worry … we'll get to those terms a bit later).
Absolute Returns:
As an alternative investment that uses alternatives to stocks and bonds, the returns that hedge funds seek are different. Unlike mutual funds, which strive to outperform a relative index or benchmark such as the S&P 500 or Dow Jones, hedge funds utilize a bevy of alternative investment strategies in order to produce positive returns regardless of market conditions and fluctuations.
2
In other words, the goal of hedge funds is to deliver long‐term growth of capital and achieve positive returns. Hedge funds produce these “absolute returns” by investing in alternative assets (explained in a previous section) with alternative investment strategies (explained in the following section).
Alternative Investment Strategies:
In order to produce these absolute returns that are disconnected from the stock and bond markets, hedge funds rely on a wide range of diverse alternative investment strategies that seek to mitigate risk while protecting capital and maximizing returns. Although we will discuss these strategies in detail in
Chapter Seven
, they are classified into the following categories:
Long/short equity
Relative value
Event driven
Directional
Managers/Partners:
Just who are these magicians who employ these alternative investment strategies in the quest for absolute returns and how do they structure their funds? Primarily, hedge funds are legally organized as limited partnerships, trusts, or limited liability companies (LLCs). Under this arrangement, there is one general partner who is equipped by the private placement memorandum to have discretion over the assets of the fund. The limited partners are the investors in the fund who are not fully liable—they are only liable for any losses that relate to their investment amounts. As such, many hedge fund managers “operate as general partners through another company as a way to avoid the unlimited personal liability, thus only exposing themselves to limited liability given the company serving as the general partner.”
3
Oftentimes, the general partner has his own money invested in the fund. In theory, this arrangement incentivizes and motivates the manager, while comforting the weary investor, because any investment decisions and/or results will affect the manager's personal pocketbook.
A word of caution—don't invest in a manager who doesn't “eat their own cooking” and doesn't put his money alongside that of his clients or limited partners. There is nothing that concentrates the mind better than the fear of capital losses.
Fees:
How do these managers make money? Hedge fund managers typically charge two types of fees: a management fee and a performance fee. Infamously known as “two and twenty,” the fees that a general partner typically makes are between 1.0% and 2.0% of the fund's assets under management
plus
20% of the profits. Translation: if you put a million dollars into the fund, assuming the fund charges 1.5%, the annual management fee will be $15,000. The manager is then entitled to a percentage of the profits. So let's say that the group has a gross return after the management fee of 20%. In this example, the manager gets $40,000 and the investor gets to keep $160,000. (We'll discuss this structure in more detail in Chapters One and Four.)
Accredited Investors:
Unlike mutual funds in which any Tom, Dick, or Harry can invest, hedge funds have historically only been available to “accredited” investors. To meet this criterion, individuals must have a minimum of $1 million net worth (excluding the value of the primary residence) and/or make more than $200,000 a year, while entities must have a minimum of $5 million in total assets (or entities the owners of which are all accredited investors).
SEC Regulation:
As of the writing of this book in April 2024, hedge funds are now subject to more comprehensive regulation by the US Securities and Exchange Commission (SEC), a financial industry oversight entity. Over the past decade, regulators have intensified their scrutiny of these alternative investment vehicles to enhance transparency and protect investors. Despite the increased regulation, hedge funds still have the flexibility to invest in a broad range of traditional and nontraditional securities using diverse investing techniques. Many funds in the industry—including SkyBridge—have adapted to the regulatory environment and are working closely with regulators to ensure compliance and adopt best practices. As I've often said, my number one priority at SkyBridge—before
anything else
, even my morning coffee—is compliance. Without that, everything else goes out the window.
Now let's bring the pieces all together to form a definition—a hedge fund is an alternative investment vehicle that seeks to produce absolute returns by utilizing a wide range of traditional and untraditional investment strategies that exploit market opportunities while protecting principal, preserving capital, and maximizing returns. These private investment pools are actively run by managers who typically invest their own money in the fund and receive a 20% performance fee, which consequently serves to align their interests with the interest of investors in the fund.
4
They are only available to accredited investors and are currently not all regulated by the SEC. (Boy! That was a mouthful!)
… What's that you say? You want to keep dissecting further? You want an in‐depth overview of all of those components just mentioned so that you can impress your friends at your next dinner party with your vast wealth of knowledge as it relates to this mysterious industry? You want a piece of the hedge fund universe? We'll get to all of that—and more—in the next 12 chapters.
Lifting the Veil
The Little Book of Hedge Funds will be chock‐full of synthesized information that will make you wiser and potentially more profitable yet has none of the unnecessary, extraneous, high‐brow content that will make you want to run for the hills. First, we'll explore the inner realms of the hedge fund world by defining and dissecting its core features and comparing this alternative asset to its more popular twin sibling—mutual funds. This crash course will be like an Italian Sunday dinner. We will load you up with information and fatten you up with a comprehensive knowledge base.
