The Future of Hedge Fund Investing: A Regulatory and Structural Solution for a Fallen Industry - Hardcover

Agarwal, Monty

Hardcover

ISBN 10: 0470537442 ISBN 13: 9780470537442

Publisher: Wiley, 2009

Synopsis

A detailed look at how to fix the hedge fund industry

The Future of Hedge Fund Investing spells out in refreshingly stark terms exactly how the industry let down its clients, and the changes needed to restore their confidence. Written by Monty Agarwal, the founder of Predator Capital Management, this insider's guide gives a full assessment of the business, including the advantages of hedge funds, their pitfalls, and, most importantly, how to avoid these missteps.

The book begins by describing the hedge fund universe, which includes funds and fund of funds; fund regulators, major investors, and middlemen; and fee structures, incentives, and typical investment strategies. From here, Agarwal explores possible solutions and fixes as he touches upon several important issues within this field.

• Examines hedge funds' role in the 2008 market crisis and what can be learned from it
• Discusses the structural changes for fund of funds in areas including trading, diversification, risk management, and due diligence
• Provides guidance for investors to follow when interviewing hedge fund managers

Whether you're a financial professional, a potential investor, or simply an interested reader, The Future of Hedge Fund Investing gives you a clear look at the state of hedge funds today as well as a picture of what the future may hold for them.

About this title

From the Back Cover

Praise for
The Future of Hedge Fund Investing

"The Future of Hedge Fund Investing is an excellent survey of the hedge fund industry landscape. Monty Agarwal's treatment of the subject serves as a thoughtful guide for investors in hedge funds and their managers. The book references a variety of recent events that are sure to shape the industry's future. At the same time, it offers practical, useful insights and model solutions to those who wish to successfully navigate the complexities and challenges of hedge fund investing. A highly recommended read."—Sharath M. Sury, Dean's Executive Professor of Finance, Santa Clara University; Adjunct Professor of Economics, University of California; Director, Institute of Financial Innovation & Risk Management; and former CEO, S4 Capital Family Office

"While hedge funds flounder and regulators fiddle, Monty Agarwal is the first to objectively diagnose the industry's dysfunctions and provide a solid road map for its rehabilitation. This book is an absolute must for investors who got burned by hedge funds in the past and for anyone who wants to use hedge funds for wealth-building in the future."—Martin D. Weiss, author of the New York Times bestseller, The Ultimate Depression Survival Guide

"As a fund of funds manager, I found Agarwal's 'other-side-of-the-table' perspective of having managed his own hedge fund to be entertaining and informative. His unique insight on how to approach various situations along the due diligence process in order to make the best investment decisions is invaluable to even the most experienced professionals in this business."—Alan Cheng, CFA, Portfolio Manager, Contego Capital Partners

"An in-depth look at the inner workings of the hedge fund industry. Agarwal clearly outlines some of the basic groundwork that must be done by investors interested in hedge funds. Filled with anecdotes and some clever analyses that expose a few of the recent illegal schemes in the financial industry, this is a must-read for any investor."—Arvind Hariharan, Global Head of Commodity Hybrids, Standard Bank

"This is a timely, entertaining, and thought-provoking book that challenges the prevailing investment allocation model in the hedge fund community. Agarwal uses his unique perspective as an experienced, successful trader and hedge fund manager to analyze recent hedge fund frauds and meltdowns and to suggest a new, superior methodology for hedge fund investing."—Jamie Lesher, Partner, Coronado Investments, LLC

From the Inside Flap

How to fix the hedge fund industry

The world will always have its Ponzi schemes and money managers like Bernie Madoff. But for today's financial professional, the germane question raised by recent scandals is not why people commit crimes, but rather why the paid experts—especially fund of funds managers—failed to detect investment hazards that seem so glaring in retrospect.

The Future of Hedge Fund Investing spells out, in refreshingly stark terms, exactly how the industry let down its clients and the changes needed to restore their confidence. Written by Monty Agarwal, the founder of Predator Capital Management, this insider's guide gives a full assessment of the business, including the ad-vantages of hedge funds, their pitfalls, and, most importantly, how to avoid these missteps.

The coverage begins by describing the hedge fund universe, which includes funds and funds of funds; fund regulators, major investors, and middlemen; fee structures, incentives, what it takes to become a successful hedge fund manager, and typical investment strategies. From here, Agarwal explores possible solutions and fixes as he touches upon several important issues within this field, such as:

• Structural changes for funds of funds in areas including trading, diversification, risk management, and due diligence

• Guidelines for investors to follow when interviewing hedge fund managers

• How to improve the overall due diligence process

• The role of hedge funds in the 2008 market crisis and what can be learned from it

• How the experts failed and the different approach the industry needs to adopt to avoid these failures as we move forward

Given the vital role hedge funds play in the global capital markets, this industry deserves to be both better understood and better run. The Future of Hedge Fund Investing offers a critical yet constructive analysis of these crucial financial entities. Whether you're a financial professional, a potential investor, or simply an interested reader, The Future of Hedge Fund Investing gives you a clear look at the state of hedge funds today as well as a picture of what the future may hold for them.

About this edition

• Publisher: Wiley
• Publication date: 2009
• ISBN 10: 0470537442
• ISBN 13: 9780470537442
• Binding: Hardcover
• Edition number: 1
• Number of pages: 208