Table of Contents
Acknowledgements.
Introduction.
Chapter 1: Hedge Funds Past, Present, and Future.
The Father of the Hedge Fund Industry.
Why Invest in Hedge Funds?
Understanding the Market.
What Happened at Bear, and Why.
Why This Book?
Chapter 2: Hedge Funds Today.
Hedge Funds In The News.
How Hedge Funds are Regulated.
Recent Calls for Regulation.
Hedge Fund Fees.
Commission Give-Up.
Continuing the Jones Legacy.
Chapter 3: The Men Who Made the Industry What it is Today.
A Force to Be Reckoned With.
Hedge Fund Legends.
George Soros.
How Soros Managed Money.
Michael Steinhardt.
How Steinhardt Managed Money.
Julian Robertson.
How Robertson Managed Money.
Standing on the Shoulders of Giants.
Chapter 4: Running Your Fund Transparently.
When Good Funds Go Bad.
What You Can Learn from the Credit Crisis.
What Went Wrong.
Perception versus Reality.
Fraud.
Information Exchange.
Giving Your Investors Their Due.
Explaining Your Strategy.
Keeping the Lines of Communication Flowing.
Communication During a Crisis.
Jumping on the Hedge Fund Bandwagon
The Year of the Hedge Fund.
Where the Industry is Heading.
Chapter 5: How Hedge Funds are Packaged.
Funds of Funds.
How a Fund of Funds Works.
Fund of Fund Economics.
The Costs of Running a Fund of Funds.
Fund of Funds Growth.
Fund of Fund Buyouts.
Managers of Managers.
MOM Knows Best.
The Pros and Cons of Transparency.
Diversifying Your Portfolio.
Avoiding Common Problems.
Chapter 6: How to Raise Money.
Friends and Family, Referrals, and Perfect Strangers.
Dialing for Dollars.
Making Connections.
Capital Introduction Services.
How Capital Services Work.
Third-Party Marketing.
Choosing a Third-Party Marketer.
When to Hire a Third-Party Marketer.
The Road to Wealth.
Conducting Reconnaissance
A Cautionary Tale.
If You Build It, They Won't Come.
Finding the Right Investors.
Taking Your Strategy to the Streets.
Vetting Your Investors.
Preparing the Pitch Book.
A Few Final Thoughts on the Essence of Successful Marketing.
Chapter 7: The Supporting Staff.
The Cardinal Rule of Choosing a Service Provider.
The Lawyers.
Choosing an Experienced Attorney.
What to Ask Your Attorney.
The Accountants.
Prime Brokers.
Third-Party Administration.
Calculating Net Asset Values.
Size Matters.
Finding a Third Party Administrator.
Using a Third-Party Administrator for Onshore Funds.
Using a Third-Party Administrator for Offshore Funds.
Insurance Companies.
Headhunters.
Other Services.
Taking Advantage of Technology.
Parting Thoughts on Service Providers.
Chapter 8: Fraud, Collapse, and the Kitchen Sink.
Why Fraud Exists.
Is Fraud Really Rampant in the Hedge Fund Industry?
Why the Popular Press Has it Wrong.
Why Hedge Funds Implode.
In a Word: “Ego”.
Why Fraud Happens in the Hedge Fund Industry.
The KL Financial Debacle.
Manhattan Investment Fund.
Lake Shore Fund Complex.
Hedge Fund Mismanagement.
The Amaranth Story.
DB Zwirn & Company.
Bear Stearns.
What Went Wrong.
How to Protect Yourself.
Regulatory Moves to Stop Fraud and Mismanagement.
Investor Due Diligence.
Manager Due Diligence.
Making a Good First Impression.
Chapter 9: A Few Parting Thoughts.
Appendix A: Due Diligence Questionnaire.
Appendix B: Resource Guide.
Appendix C: Historic Performance of Hedge Funds.
Glossary.
Notes.
Index.
