Visual Guide to Hedge Funds -- Contents -- How to Use This Book -- Introduction -- CHAPTER 1 Hedge Fund Daily Operations -- Hedge Fund Manager -- Portfolio Managers -- Traders -- Risk Management -- Chief Financial Officer -- Controllers -- Settlements -- Margin and Collateral -- Legal -- Compliance -- Investor-Relations -- Conclusion -- Test Yourself -- CHAPTER 2 The Hedge Fund Life Cycle: From Startup to Titan -- Hedge Fund Startups (1M to 10M) -- Case Study -- Emerging Hedge Fund Managers (10M to 300M) -- Hedge Fund Shooting Stars (300M to 1B) -- Hedge Fund Titans (1B+) -- Conclusion -- Test Yourself -- CHAPTER 3 Hedge Fund Investors -- Who Invests in Hedge Funds? -- The Hedge Fund Investor Due-Diligence Process -- Hedge Fund Investor FAQs -- Test Yourself -- CHAPTER 4 Hedge Fund Capital Raising -- Daily Process -- Hedge Fund Warfare -- The 1 Percent Rule -- Hedge Fund Investor Avatar Focus -- Capital-Raising Channels -- Emulation before Innovation -- Placement Agents and Third-Party Marketers -- Examples and Case Studies -- Hedge Fund Marketing and Capital-Raising FAQs -- Conclusion -- Test Yourself -- CHAPTER 5 Long/Short Equity Strategy -- Identifying the Opportunity -- Discretionary Strategies -- Performance -- Quantitative Strategies -- Pair Strategies -- Finding Pairs of Stocks -- How the Long/Short Strategy Works -- The Process of Short Selling -- Alternatives to Shorting a Stock -- Access to Long/Short Strategies -- Fee Structure -- Taxes -- Specialization versus Generalization -- Who Runs a Long/Short Hedge Fund? -- Risks -- Leverage -- Why Invest in a Long/Short Hedge Fund? -- Conclusion -- Test Yourself -- CHAPTER 6 Global Macro Strategy -- Discretionary versus Systematic -- Fundamental Analysis -- Technical Analysis -- Discretionary Technical Analysis -- Systematic Technical Analysis -- Leverage -- Derivatives.

Over-the-Counter Products -- Options -- Types of Products -- Currencies -- Interest-Rate Trading -- Stock Index Trading -- Commodity Trading -- Who Runs a Macro Fund? -- Why Invest in a Global Macro Fund? -- Conclusion -- Test Yourself -- CHAPTER 7 Event-Driven Strategy -- Who Runs an Event-Driven Fund? -- How to Invest Around Events -- Options Strategies -- Capital-Structure Arbitrage -- Distressed Debt -- Risks -- Why Invest in an Event-Driven Hedge Fund? -- Conclusion -- Test Yourself -- CHAPTER 8 Fixed-Income Strategy -- How Do Fixed-Income Securities Work? -- Duration -- Convexity -- Basic Strategy -- Types of Fixed-Income Products -- Sovereign Products -- Corporate Bonds -- Municipal Bonds -- Ratings -- Inflation -- Strategies -- Arbitrage -- Spread Trading -- Who Runs a Fixed-Income Hedge Fund? -- Why Invest in a Fixed Income Fund? -- Industry Insight -- Conclusion -- Test Yourself -- CHAPTER 9 Convertible-Arbitrage Strategy -- What is a Convertible Bond? -- Strategies -- Types of Arbitrage Techniques -- Convertible-Arbitrage Risks -- Delta Hedging -- Conversion Price Risks and Benefits -- Time Decay -- Interest-Rate Risks -- Sovereign-Interest Rates -- Corporate Yields -- Who Manages Convertible Arbitrage Hedge Funds? -- The Benefits of a Convertible-Arbitrage Strategy -- Conclusion -- Test Yourself -- CHAPTER 10 Quantitative and Algorithmic Trading Strategies -- Quantitative Trading -- Psychology -- Algorithmic Trading -- High-Frequency Trading -- Pattern Recognition -- Patterns -- Head and Shoulder -- Flags -- Trading Strategies -- Pair Trading -- Pair-Trade Analysis -- Mean-Reversion Techniques -- Pair Returns -- Risks of Pair Trading -- Statistical Arbitrage -- Statistical-Arbitrage Risks -- Portfolio Optimization -- Simulation -- Capital-Structure Arbitrage -- Volatility Arbitrage -- Momentum -- Industry Insight -- Conclusion.

Test Yourself -- CHAPTER 11 Managed Futures -- Defining Managed Futures -- Futures Contracts -- Limit Movements -- Benefits of Managed Futures -- Margin -- How Leverage Affects Returns -- Performance -- Participants -- Analyzing Risk -- Fees -- Regulation -- Trading Strategies -- Spread Trading -- Arbitrage Strategies -- Trend Following -- Back-testing -- Industry Insight -- Conclusion -- Test Yourself -- CHAPTER 12 Credit- and Asset-Based Lending -- Distressed Debt -- Distressed-Debt Transactions -- Evaluating Asset-Based Loans -- Advance Rate -- Hedge Fund History -- Second Lien -- Risks -- Conflicts of Interest -- How an ABL Strategy Works -- Types of Collateral Analysis -- Field Examination Example -- Hedging -- Closing an Asset-Based Loan Deal -- Industry Insight -- Conclusion -- Test Yourself -- CHAPTER 13 Multi-Strategy Hedge Funds -- History of Multi-Strategy Funds -- Benefits -- Risks -- Benchmarks -- Fees -- Liquidity -- Strategies -- Global Macro -- Currencies -- Interest-Rate Trading -- Stock-Index Trading -- Long/Short Equity -- Why Invest in a Multi-Strategy Fund? -- Multi-Strategy Compared to Fund of Funds -- Conclusion -- Test Yourself -- CHAPTER 14 Fund of Hedge Funds -- What Is a Fund of Hedge Funds? -- Fund Structure -- Fund-of-Funds Operations -- Liquidity -- Strategies -- Fee Structure -- Active Portfolio Management and Monitoring -- Improved Communication with Managers -- Lower Barriers to Entry -- Additional Layer of Due Diligence -- Diversifying within the Hedge Fund Sector -- Economies of Scale -- Disadvantages -- Limited Liquidity -- Exposure to Industrywide Trends -- Less Control and Customization -- Less Transparency -- The Current State of Funds of Hedge Funds -- Industry Insight -- Conclusion -- Test Yourself -- Appendix A: Bloomberg Functionality Cheat Sheet -- Appendix B: Answers to Test-Yourself Quizzes -- References.

About the Author -- Index.