Visual Guide to Hedge Funds

Vivid graphics make hedge funds, how they work and how to invest in them, accessible for investors and finance professionals Despite the recent wave of scandals related to the hedge fund industry, interest in hedge funds as a relatively safe alternative investment remains high. Yet details about how the industry operates and the strategies employed by different types of hedge funds is hard to come by. With increasing calls from lawmakers and the media for industry reform, it is incumbent upon finance professionals and high-net-worth individuals to take a good look before leaping into hedge funds. That's where the Bloomberg Visual Guide to Hedge Funds comes in. It provides a graphically rich, comprehensive overview of the industry and its practitioners, zeroing in on how different types of hedge funds work. Based on extensive interviews with hedge fund managers, analysts and other industry experts, the book provides a detailed look at the industry and how it works Outlines investment strategies employed by both long and short hedge funds, as well as global macro strategies Arms you with need-to-know tips, tools and techniques for success with all hedge fund investment strategies Provides a highly visual presentation with an emphasis on graphics and professional applications Real-life examples take you inside how hedge funds illustrating how they operate, who manages them and who invests in them

How to Use This Book vii Introduction ix Chapter 1: Hedge Fund Daily Operations 1 Chapter 2: The Hedge Fund Life Cycle: From Startup to Titan 11 Chapter 3: Hedge Fund Investors 23 Chapter 4: Hedge Fund Capital Raising 31 Chapter 5: Long/Short Equity Strategy 41 Chapter 6: Global Macro Strategy 55 Chapter 7: Event-Driven Strategy 71 Chapter 8: Fixed-Income Strategy 77 Chapter 9: Convertible-Arbitrage Strategy 107 Chapter 10: Quantitative and Algorithmic Trading Strategies 115 Chapter 11: Managed Futures 133 Chapter 12: Credit-and Asset-Based Lending 155 Chapter 13: Multi-Strategy Hedge Funds 171 Chapter 14: Fund of Hedge Funds 179 Appendix A: Bloomberg Functionality Cheat Sheet 199 Appendix B: Answers to Test-Yourself Quizzes 201 References 205 About the Author 207 Index 209