Hedge Funds : Myths and Limits

Many myths have grown up around the hedge fund industry, aided by high profile cases such as LTCM. However, like any investment category, each manager differs in the leverage they use and the hedging policies they employ. Nonetheless, the primary aim of most hedge funds is to reduce volatility and risk while attempting to preserve capital and deliver positive returns under all market conditions. In this book the author explains, from an investor s perspective, the workings of hedge funds, their uses, risks and potential returns. No prior knowledge of the field is required as the author explains the strategies in a clear, concise manner. He also uses many examples and case studies to illustrate his point. This book is an ideal reference source for both investment professionals and serious financial students. Written intelligently and authoritatively, the book features the following: The characteristics of hedge funds against traditional investment funds The legal framework surrounding hedge funds in the US and other countries Various strategies followed by hedge funds The hedge fund indices that are available Asset allocation and the hedge fund selection process New investment vehicles Recent academic research on hedge funds.