Cover -- Contents -- Contributors -- Preface -- Introduction -- Acknowledgements -- Fixed income arbitrage¹ -- Government Issued Debt -- Asset Swaps (Excluding Convertible Bonds) -- Yield Curve Arbitrage -- Corporate Bond Arbitrage -- Capital Structure Arbitrage -- Diversity in mortgage hedge fund investing -- Introduction -- Some Basic Mortgage Mechanics -- Varieties of Mortgage Loans -- Varieties of Mortgage-Backed Securities -- Varieties of Strategies -- Analytic Methods and Models -- Liquidity and Leverage -- Net Asset Value and Marking to Market -- Hedging Strategies and Risk Management -- Conclusion -- Absolute returns in commodity (natural resource) futures investments -- Return Compression in Hedge Funds has led to an Increased Interest in Investing in Commodities -- The Traditional Case for Commodity Investing: The Structural Returns Available in the Futures Markets -- The Updated Case for Commodities: The Potential for Global Supply Shocks and Inflation -- Risk Management in Commodity Investing -- Conclusion -- References -- Issues in hedge funds going offshore -- Introduction -- Common Considerations -- Setting up in the Cayman Islands -- List of References and Readings -- Structured products on hedge funds -- The Basics -- Evolution of Structured Products -- Types of Structured Products -- Principal protection structures -- Using Structured Products -- Looking Ahead -- Careers in hedge funds -- Overview -- Back Office Careers -- Middle Office Careers -- Front Office Careers -- Special Issues that Women Face -- A liquidity haircut for hedge funds¹ -- Introduction -- Valuing the Hedge Fund Manager's Contract -- Longstaff 's Method -- Simulating the Illiquidity Premium -- Conclusion -- References -- Hedge fund investing: some words of caution -- Introduction -- The Available Data on Hedge Funds are far from Perfect.

Funds Following the same type of Strategy may still Behave very Differently -- Similar Indices from Different Index Providers may Behave very Differently -- The True Risks of Hedge Funds Tend to be Seriously Underestimated -- Sharpe Ratios and Alphas of Hedge Funds can be Highly Misleading -- There are no Shortcuts in Hedge Fund Selection -- Hedge Fund Diversification is not a Free Lunch -- Hedge Funds do not Combine very well with Equity -- Modern Portfolio Theory is too Simplistic to deal with Hedge Funds -- One has to Invest at least 20% in Hedge Funds for it to make a Difference -- Conclusion -- References -- On ranking schemes and portfolio selection -- Introduction -- Conventions and Definitions -- Equivalence in a Gaussian World -- Ranking and Risk Aversion -- A Better Utility Function -- Extension to Non-Gaussian Distributions -- Market Determination of m -- Modern Portfolio Theory -- Conclusions -- References -- Index.