Investment Strategies of Hedge Funds

by Filippo Stefanini

Review

"This is a very good place to investigate the reality of hedge funds." (Pensions World, October 2007)

Product Description

One of the fastest growing investment sectors ever seen, hedge funds are considered by many to be exotic and inaccessible.  This book provides an intensive learning experience, defining hedge funds, explaining hedge fund strategies while offering both qualitative and quantitative tools that investors need to access these types of funds.  Topics not usually covered in discussions of hedge funds are included, such as a theoretical discussion of each hedge fund strategy followed by trading examples provided by successful hedge fund managers.

From the Inside Flap

“This book is a comprehensive review covering all aspects of hedge fund trading strategies. The real-life examples are particularly insightful for a beginner. A must-read for anyone involved with the hedge fund industry.”

—Narayan Y. Naik, Associate Professor of Finance, Director, BNP Paribas Hedge Fund Centre

“This excellent introduction to the world of hedge funds takes the reader on a tour of the wide variety of strategies employed by these often mysterious but increasingly important investment institutions. Both students and professionals will value the nicely organized presentation that combines insightful discussions with many interesting facts and figures.”

—Robert Stambaugh, Ronald O. Perelman Professor of Finance, The Wharton School, University of Pennsylvania

From the Back Cover

Since the first hedge fund was launched in 1949 by Alfred Winslow Jones, the industry has grown impressively. In 2005 it reached the record size of 1.3 trillion dollars and 8000 hedge funds. Responsible for a big slice of the daily trading volumes of financial markets, hedge funds are among the top clients for brokers, given the level of trading fees they generate.

The hedge fund world is a very heterogeneous one: there are hedge funds that encompass only a few people and those with trading floors bigger than soccer fields. The hedge fund world seems to be the place where the ability to generate positive uncorrelated returns resides, even though performances are not publicly disclosed.

And still, this remarkable phenomenon is surrounded by an aura of mystery. Using real-life examples and case studies, this book provides an intensive learning experience, and helps readers understand the investment strategies of hedge funds showing them how they can invest to make money in an uncorrelated way with financial markets.

About the Author

Filippo Stefanini is deputy Chief Investment Officer and head of Asset Allocation in Aletti Gestielle Alternative SGR, defining the asset allocation and the fund picking of 18 portfolios of hedge funds with 2.99 billion euro of assets under management as of August 1 st 2007. Filippo Stefanini is professor of Risk Management at the engineering faculty of Bergamo University in Italy . He has previously worked as a consultant for Accenture in the Asset Management and Investment Banking areas. Filippo is the author of Investment Strategies of Hedge Funds , published by John Wiley & Sons in 2006. He has also authored an Italian language book entitled, Hedge Funds: strategie di investimento and co-authored Hedge Funds: Investire per generare rendimenti assoluti? , both published by Il Sole 24 Ore.