Book Reviews, Economics

Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance

Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance

Kevin R. Mirabile’s Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance covers a lot of familiar territory, including the standard fund strategies. But it’s more sophisticated and provides more color than the run-of-the-mill hedge fund book, and therein lies its strength.

Mirabile is both a practitioner and an academic, and he tailors his book accordingly. It addresses potential hedge fund investors, professionals, and students. In its (dominant) textbook “personality” it includes discussion questions and problems as well as extensive bibliographies at the end of each chapter. It also deals with topics that I suspect most individual investors would find abstruse, such as economies of agglomeration or skills and staffing requirements that are unique to a particular investing style. The individual looking to invest in a hedge fund or a fund of funds would probably doze off part way through the book. His notion of due diligence would be severely strained. The student or professional, on the other hand, would keep turning pages and continue to be rewarded for his effort.

After an overview of hedge funds and a discussion of strategies, the author turns in the final part of the book to evaluating factors influencing individual fund risk and reward: measuring performance and performance persistence, the impact of fund characteristics and terms on performance, performing due diligence on specific managers and funds, and evaluating the roles of service providers.

On the first topic he contends that “investors evaluating a particular manager’s track record or a fund’s performance should prepare their analysis from four distinct perspectives.

Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance

Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance From the Inside Flap

Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance Second Edition is a complete guide to alternative investments for students and professionals alike. This updated and expanded edition is 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.

Alternative investment expertise has become central to the asset management and institutional investment community, and this peerless resource ensures a clear understanding of the intricacies of the field and skill-building guidance through the practical techniques used to navigate this diverse set of asset classes successfully.

This edition makes it easy to bring material into the classroom and includes rigorous reinforcement practice aimed at making you an expert on:

  • Recognizing hedge fund trends, flows, and characteristics
  • Examining major hedge fund strategies and how they interact
  • The technical side of financing, settlement, and clearance
  • Measuring fund performance and optimizing contributing factors

Whether you’re studying for the CFA or CAIA exams or furthering your professional expertise, the learning objectives, clarifying illustrations, and thought-provoking discussion questions and exercises in each chapter enable you to master the how and why of the most prominent hedge fund investing strategies—including global macro and long/short equity, fixed income relative value, credit arbitrage, and convertible arbitrage.

Hedge Fund Investing, Second Edition gives you the deep and instinctual understanding you need to operate effectively within the alternative investment sphere.

Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance From the Back Cover

Praise for Hedge Fund Investing, Second Edition

“I had the privilege to work with Kevin when he was the Chief Operating Officer at Larch Lane Advisors, a leading hedge fund seeding firm and investor in new funds. Kevin has a great ability to explain the inner workings of hedge funds from both an operational and investment perspective.”
—Peter Brady, Director of Sales and Client Service, Lyxor Asset Management, Inc.

“With a timely update to what is becoming a standard in the field, Professor Mirabile again manages to condense his unequaled practical and academic knowledge into a concise, well-organized hornbook accessible to students and investment practitioners alike. Mirabile’s work??is the place to start for those looking to understand, work, or invest in private funds.”
—John P. Drohan, President, ACI Financial Markets Association

“As a hedge fund manager I look for all of my employees to have the knowledge of the industry that Hedge Fund Investing provides. It is an ideal starting point for anyone who expects to work at or invest with a hedge fund. Kevin Mirabile’s knowledge of hedge funds is unusually valuable because he has worked in all aspects of the business—financing, trading, portfolio management, and manager selection. He has seen hedge funds evolve from a cottage industry to a mainstream component of the asset management complex. Kevin is an ideal person to learn the business from.”
—Kevin Coldiron, Co-Founder, Algert Coldiron Investors, LLC

“Mirabile’s book strikes that rare balance between being informative for practitioners, instructive for educators, and accessible for individual investors. The new version offers worthwhile updates, and readers will find this to be a book they go back to again in the future as a handy refresher.??Worth a spot in any investor’s library.”
—Jonathan Brolin, Founder and Managing Partner, Edenbrook Capital and Adjunct Professor, Gabelli School of Business, Fordham University

Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance

Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance
Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance

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