The Hedge Fund Mirage: The Illusion of Big Money and Why It's Too Good to Be True
The dismal truth about hedge funds and how investors can get a greater share of the profits
Shocking but true: if all the money that's ever been invested in hedge funds had been in treasury bills, the results would have been twice as good.
Although hedge fund managers have earned some great fortunes, investors as a group have done quite poorly, particularly in recent years. Plagued by high fees, complex legal structures, poor disclosure, and return chasing, investors confront surprisingly meager results. Drawing on an insider's view of industry growth during the 1990s, a time when hedge fund investors did well in part because there were relatively few of them, "The Hedge Fund Mirage" chronicles the early days of hedge fund investing before institutions got into the game and goes on to describe the seeding business, a specialized area in which investors provide venture capital-type funding to promising but undiscovered hedge funds. Today's investors need to do better, and this book highlights the many subtle and not-so-subtle ways that the returns and risks are biased in favor of the hedge fund manager, and how investors and allocators can redress the imbalance. The surprising frequency of fraud, highlighted with several examples that the author was able to avoid through solid due diligence, industry contacts, and some luck Why new and emerging hedge fund managers are where generally better returns are to be found, because most capital invested is steered towards apparently safer but less profitable large, established funds rather than smaller managers that evoke the more profitable 1990s
Hedge fund investors have had it hard in recent years, but "The Hedge Fund Mirage" is here to change that, by turning the tables on conventional wisdom and putting the hedge fund investor back on top.
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Review: The Hedge Fund Mirage: The Illusion of Big Money and Why It's Too Good to Be TrueUser Review - Eric Lin - Goodreads
This started out really interesting, since the author explained a lot of details about finance that I didn't understand, it started getting repetitive and name droppy, and I couldn't make myself finish after that. Read full review
Review: The Hedge Fund Mirage: The Illusion of Big Money and Why It's Too Good to Be TrueUser Review - Mike - Goodreads
Author is 25 yr veteran of Wall St, has convinced himself that he is the only one who has noticed that hedge fund managers get rich and that hedge fund returns were much better when there was less ... Read full review