Top Hedge Fund Investors: Stories, Strategies, and Advice

by Cathleen M. Rittereiser, Lawrence E. Kochard

Overview

A professional's guide to the world of hedge fund investing

Throughout the financial crisis of 2008, many hedge funds suffered massive losses and were often blamed for the extreme market upheavals. In the wake f the crisis, hedge funds remain a source of fascination for the media, legislators, and investors, mostly due to misunderstanding. Historically portrayed as risky investment funds for the very wealthy run by swashbuckling traders, the truth is hedge funds are simply an investment vehicle designed to generate superior returns and reduce an investor's overall portfolio risk.

Investors have good reasons to remain fascinated with hedge funds. Although many individual funds have underperformed or collapsed, hedge funds as a whole have provided solid returns while reducing risks. Savvy institutions have invested in hedge funds for many years and have made them a large and powerful force in the markets. Investing in hedge funds requires sophisticated knowledge, understanding, skill, access, and experience. Individuals and institutions, whether they are new to hedge funds or need to improve, can find those attributes in the stories of the successful hedge fund investors profiled in Hedge Fund Investors.

Hedge Fund Investors chronicles the challenges and rewards these investors face, in selecting hedge fund managers, managing risks, and constructing portfolios. In revealing conversations, leading hedge fund investors who place hundreds of billions of dollars in hedge funds, share their philosophies, strategies, and advice.

• Profiles a variety of different investors from the pioneers in hedge fund investing to managers for high net-worth individuals and fund of funds investors
• Discusses winners and losers in the recent market decline, problematic hedge fund strategies, and how these current events will change future strategies
• Provides lessons, insights, and advice beneficial to all hedge fund investors

Engaging and informative, Hedge Fund Investors will prove valuable to anyone involved in placing money with hedge funds, as well as hedge funds who seek to better understand their clients.

Product Details

ISBN-13:	9780470637142
Publisher:	Wiley
Publication date:	06/03/2010
Series:	Wiley Finance , #543
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	240
File size:	450 KB

About the Author

CATHLEEN M. RITTEREISER is the coauthor of Foundation and Endowment Investing (Wiley) and informs and educates institutional investors as a writer, speaker, and consultant. An alternative investments marketing executive with over twenty years' experience, Rittereiser has held positions with leading financial firms, including Symphony Asset Management and Merrill Lynch. She received a BA from Franklin & Marshall College and an MBA from New York University's Stern School of Business.

LAWRENCE E. KOCHARD, PHD, CFA, is Chief Investment Officer of the Georgetown University endowment and teaches at the McDonough School of Business at Georgetown. He is a leader in the foundation and endowment investing community and coauthor of Foundation and Endowment Investing (Wiley). Previously, Kochard was managing director of equity and hedge fund investments for the Virginia Retirement System, an adjunct finance professor at the University of Virginia, and a vice president with Goldman Sachs. He holds an MA and PhD in economics from the University of Virginia and is a CFA.

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Table of Contents

Preface xi

Acknowledgments xv

About the Authors xvii

Part One Evolution of the Hedge Fund Industry and Investing 1

Chapter 1 The Truth about Hedge Funds: From Misunderstood Investment Vehicle to Household Word 3

Chapter 2 The Investment Process: Best Practices of Successful Hedge Fund Investors 15

Chapter 3 The Hedge Fund Investment Landscape: A Snapshot in Time 25

Part Two Top Hedge Fund Investors: Stories and Strategies 31

Chapter 4 Author of the Hedge Fund Investing Story: Richard Elden, Founder and Former Chairman, Grosvenor Capital Management 33

Chapter 5 The Predictive Value of Performance: Frank Meyer, Founder and Former Chairman, Glenwood Capital Investments 47

Chapter 6 The Best Qualities of Limestone: James R. Hodge, President and Chief Investment Officer, Permal Asset Management Inc. 69

Chapter 7 An Asymmetrical Talent: Mark J.P. Anson, Managing Partner and Chair of the Investment Committee, Oak Hill Investment Management 83

Chapter 8 Early Endowment CIO and Entrepreneur: Louis W. Moelchert, Jr., Managing Partner, Private Advisors, LLC 103

Chapter 9 An Ambassador of the Highest Standard: Christopher Fawcett, Co-Founder, Senior Partner, Fauchier Partners 117

Chapter 10 A Risk Management Mastermind: Deepak Gurnani, Head of Hedge Funds, Investcorp 137

Chapter 11 A Driver of Returns: Kathryn A. Hall, Chairman, Chief Executive Officer, and Chief Investment Officer, Hall Capital Partners 155

Chapter 12 A Better Way: Ted Seides, Co-Founder, Protégé Partners 173

Chapter 13 The Quality of the People: A Review and Preview 199

Notes 211

Index 215

What People are Saying About This

From the Publisher

"In Top Hedge Fund Investors, Rittereiser and Kochard have put to rest any lingering doubts that hedge funds have become an essential component of successful investment programs. When a collection of extraordinarily talented individuals, like those profiled in this book, dedicate their lives to a common discipline, we can be sure that these strategies have reached a permanent level of prominence in the investment world. Top Hedge Fund Investors profiles men and women with passion, courage, intellect, tenacity, inquisitiveness and resiliency, who have helped establish a standard of excellence in hedge fund investing that all those who read this book will benefit from emulating. We are all richer for the authors' efforts to bring together this outstanding volume of Stories, Strategy and Advice from some of the best hedge fund investors in the business."
—Mark W. Yusko, CEO & Chief Investment Officer, Morgan Creek Capital Management

"Top Hedge Fund Investors offers a refreshing perspective and unique insight into the shrouded world of hedge funds. We get a glimpse beyond the numbers and gain an insider's view of this complex industry. As one who has been with this business for nearly thirty years, I can attest that this book rings true."
—Lawrence P. Chiarello, Partner, SkyView Investment Advisors LLC

"Great subject, terrific insights from top allocators to hedge funds. Eldon, Meyer and Hodge show how to avoid making unforced errors when investing. They and the other Investors make this the best book I have seen on selecting money managers."
—Douglas Sperry Makepeace, President, Sperry Fund Management LLC, New York City

"An insightful tour of the Hedge Fund World, with some of the most experienced guides that demystify a lot of the wrong ideas people have of this industry and its players."
—Michel Amsellem, Member of the Advisory board Banque Heritage

"Given the importance that 'hedge funds' have gained in financial markets it behooves all investors, not just professionals, to understand the underlying principles used by prominent hedge fund investors. Top Hedge Fund Investors provides an interesting description of the investment philosophy of some of the leading practitioners of this relatively unknown segment of the financial markets, and how they have organized their firms."
—Charles Falcon, Retired Corporate Finance Executive