Managing Hedge Fund Managers : Quantitative and Qualitative Performance Measures

Filled with complicated investment structures and vehicles, the opaque world of hedge funds can be hard to get a handle on. But that doesn t mean you should avoid the opportunities it has to offer. Whether you consider hedge funds an asset class or just an investment vehicle, you need to understand some of the technical aspects to structure, the comparative performance statistics, and the continual vigilance needed to successfully navigate this field. That s why investment expert Edward Stavetski has written Managing Hedge Fund Managers. Page by page, Stavetski skillfully examines both the art and science of hedge fund investing. Starting with the role of the Investment Policy Statement (IPS)—where investor guidelines and expectations are set—the discussion flows to quantitative measures, qualitative rankings, and monitoring your managers. Along the way, Stavetski breaks down each step of the due diligence process and focuses on critical tasks, reviews, and questions. What is stressed time and again throughout the book is that while numbers and calculations are important to understand, they don t necessarily provide you with answers, but rather help you ask the appropriate questions. And with this book as your guide, you ll quickly discover the right questions to ask in your hedge fund search. Topics covered include: The virtues of emerging managers versus large established ones and the risks involved Casting a wide net to find a new manager How to decipher the mind numbing statistics that often surround hedge fund investing The various concepts of risk and the real exposure you face as an investor Researching qualitative factors that impact a hedge fund Highly detectable factors that were responsible for the implosion of previous hedge funds Whether you re an institutional investor building an entire portfolio or a high net worth individual looking for a single fund, the process by which you evaluate hedge funds should be comprehensive and consistent. With Managing Hedge Fund Managers as your guide, you ll learn how to approach this endeavor in a way that will improve your portfolio s overall return and put you in a better position to avoid the pitfalls that plague so many other fund investors.