CONTENTS -- Preface -- Author Biographical Sketches -- Part I: Generating Performance -- 1. Introduction John M. Longo -- 1.1 Hedge Fund History and Evolution -- 1.1.1 Hedge Fund Defined -- 1.1.2 The First Hedge Fund -- 1.1.3 Evolution of the Hedge Fund Market -- 1.1.3.1 Billion Dollar Paychecks Attract the "Best and Brightest" -- 1.1.3.2 Hedge Funds Outperform During 2000-2002 Bear Market -- 1.1.3.3 Other Notable Hedge Fund Events -- 1.2 Types of Hedge Funds -- 1.3 Paths to Alpha -- 1.3.1 Is Alpha Possible? -- 1.3.2 Superior Investment Mosaic May Lead to Alpha -- 1.3.3 Superior Information May Lead to Alpha -- 1.3.4 Superior Execution of Strategies May Lead to Alpha -- References -- 2. Hedge Fund Research vs. Traditional Research John M. Longo -- 1. Introduction -- 1.1 Hedge Fund Research Generally Has a Shorter-Term Orientation -- 1.2 Hedge Fund Research Has a Greater Focus on Short Selling -- 1.3 Hedge Fund Research Is More Dynamic In Nature -- 1.4 Hedge Fund Research Often Involves Combinations of Securities -- 2. Examples of Research Useful to a Hedge Fund Manager -- 2.1 The Freedom of Information Act (FOIA) -- 2.2 Channel Checks -- 2.3 NEGIBO TTM - The Search Engine That Complains About Everything -- 2.4 Google Alerts -- 2.5 Network of Experts to Help Generate Alpha -- 2.6 Obtaining Alpha Generating Ideas From Websites and Books -- 3. Putting It All Together In a Hedge Fund Dashboard -- Hedge Fund Alpha Tear Sheet - Chapter 2 -- End Notes -- References -- 3. Achieving Hedge Fund Alpha in Brazil Jorge Barreiro and John M. Longo -- 1. Introduction -- 2. Brazilian Economy -- 3. Overview of Brazilian Financial Markets -- 3.1 Brazilian Stock Market -- 3.2 Brazilian Bond Market -- 3.3 Brazilian Derivative Market -- 4. Unique Dynamics of the Brazilian Financial Markets -- 4.1 History of High Inflation -- 4.2 Brazil's Central Role In South America.

4.3 Brazilian Investor Profile and Behavior -- 5. Hedge Fund Strategies in Brazil -- 5.1 Global Macro -- 5.2 Fixed Income / Credit -- 5.3 Event Driven -- 5.4 Statistical Arbitrage -- 5.5 Multistrategy -- Hedge Fund Alpha Tear Sheet - Chapter 3 -- End Notes -- References -- 4. Achieving Hedge Fund Alpha in Russia Irina Samoylova and John M. Longo -- 1. Introduction -- 2. Russia's Economic Growth -- 3. Evolution of Russian Economy -- 4. Overview of Russian Financial Markets -- 4.1 Russian Stock Markets -- 4.1.1 Moscow Interbank Currency Exchange (MICEX) -- 4.1.2 Open Joint Stock Company Russian Trading System Stock Exchange (RTS OJSC) -- 4.2 Russian Bond Markets -- 4.3 Russian Derivative Markets -- 5. Unique Dynamics of the Russian Financial Markets -- 5.1 Heightened Political Risk -- 5.1.1 Yukos -- 5.1.2 Mechel -- 5.1.3 Hermitage Capital Management -- 5.2 Current Lack of Effective Insider Trading Laws -- 5.3 Russian and Eastern European Investor Behavior -- 6. Hedge Fund Strategies in Russia -- 6.1 Managed Futures / Commodity Trading Advisors (CTAs) -- 6.2 Global Macro -- 6.3 Fixed Income / Credit -- 6.4 Event Driven -- 6.5 Statistical Arbitrage -- 6.6 Multistrategy -- Hedge Fund Alpha Tear Sheet - Chapter 4 -- End Notes -- References -- 5. Achieving Hedge Fund Alpha in India Ali Jaffery and John M. Longo -- 1. Introduction -- 1.1 Overview of Indian Financial Markets -- 1.2 Financial Instruments Traded -- 1.3 Difficulty in Effective Hedging -- 2. Evolution of the Indian Markets -- 2.1 Restrictions on Ownership -- 2.2 Required Registration of Foreign Institutional Investors -- 2.3 Growth in Indian Economy -- 2.4 Rapid Increase in Foreign Investment -- 3. The Importance of Manager / Owners in Indian Publicly Traded Companies -- 4. Indian Investor Behavior -- 5. Hedge Fund Strategies in India -- 5.1 Long / Short Equity -- 5.2 Activist Funds.

5.3 Statistical Arbitrage -- 5.4 Global Macro -- 5.5 Special Situations / Distressed Equities -- 5.6 Multistrategy -- 6. Sustainability and Evolution of Alpha -- Hedge Fund Alpha Tear Sheet - Chapter 5 -- End Notes -- References -- 6. Achieving Hedge Fund Alpha in China John M. Longo, Wei-Kang Shih and Ben Sopranzetti -- 1. Introduction -- 2. China's Economic Growth -- 3. Evolution of Mainland Chinese Financial Markets -- 4. The Importance of State Owned Publicly Traded Companies in China -- 5. Overview of Chinese Stock Markets -- 5.1 Mainland China Stock Markets -- 5.2 Hong Kong Stock Market -- 5.3 Taiwan Stock Market -- 6. Overview of Chinese Bond Markets -- 6.1 Mainland China Bond Market -- 6.2 Hong Kong Bond Market -- 6.3 Taiwan Bond Market -- 7. Overview of Chinese Derivative Markets -- 7.1 Mainland China Derivatives Markets -- 7.2 Hong Kong Derivatives Markets -- 7.3 Taiwan Derivatives Markets -- 8. Unique Dynamics of the Chinese Financial Markets -- 8.1 Chinese Corporations Trading the Stock of Other Firms -- 8.2 Chinese Investor Behavior -- 9. Hedge Fund Strategies in China -- 9.1 Global Macro -- 9.2 Long / Short Equity -- 9.3 Equity Arbitrage -- 9.4 Event Driven -- 9.5 Multistrategy -- Hedge Fund Alpha Tear Sheet - Chapter 6 -- End Notes -- References -- 7. Using Derivatives to Create Alpha Sanjeev Khullar -- 1. Introduction -- 2. Derivatives -- 2.1 Derivatives Strategies -- 2.1.1 For the Hedger -- 2.1.2 For the Active Trader -- 2.1.3 For the Mutual-Fund Manager -- 2.1.4 For the Hedge-Fund Manager and Arbitrageur -- 3. Examples Illustrating Strategies to Create Alpha -- 3.1 Alpha From Futures Arbitrage -- 3.2 Alpha From Realized / Implied Volatility Arbitrage -- 3.3 Alpha From Volatility Skew Trades -- 3.4 Alpha From Cash Futures Basis Trade -- 3.5 Alpha From Trading the Optionality in Bonds.

3.6 Alpha From Trading the Optionality in Convertible Bonds -- 3.7 Alpha From Macro Interest Rate Trades -- 3.8 Alpha From Relative-Value Trades: Mortgage-Backed Securities vs. Treasuries -- 3.9 Alpha From Credit Derivatives -- 3.10 Alpha From Energy Derivatives -- 3.11 Alpha From Long / Short Strategies -- 4. Using Derivatives to Transport Alpha -- 5. Risk Management of Derivatives Portfolios -- 6. Conclusion -- Hedge Fund Alpha Tear Sheet - Chapter 7 -- End Notes -- References -- 8. Best Execution of Hedge Fund Strategies Saad Rathore -- 1. Introduction -- 2. Market Microstructure Evolution -- 2.1 Small Order Execution System (SOES) -- 2.2 Christie-Schultz Study of "Implicit Collusion" By Market Makers -- 2.3 Decimalization of U.S. Markets -- 2.4 Regulation National Market System (Reg NMS) -- 3. Best Execution of Hedge Fund Trades -- 4. Transaction Costs -- 4.1 Explicit Costs -- 4.2 Implicit Costs -- 5. Pre, During and Post Trade Analyses -- 5.1 Pre-Trade Analyses -- 5.2 During Trade Analyses -- 5.2.1 Volume Weighted Average Price (VWAP) -- 5.2.2 Time Weighted Average Price (TWAP) -- 5.2.3 Target Volume Strategies (TVOL) -- 5.2.4 Proprietary Advanced Execution Strategies -- 5.2.5 Dark Pools and Crossing Networks -- 5.2.6 Technology for Best Execution -- 5.3 Post-Trade Analysis -- 5.3.1 Transaction Cost Analysis (TCA) -- 5.3.2 Performance Analysis -- 5.3.3 Reporting on Post Trade Analysis -- Hedge Fund Alpha Tear Sheet - Chapter 8 -- End Notes -- References -- 9. Growth of the Hedge Fund Management Company: Evolving from a Single Strategy Hedge Fund to a Multistrategy Hedge Fund or Multiple Funds John M. Longo -- 1. Introduction -- 2. Methods of Single Strategy Fund Expansion -- 3. Multistrategy Hedge Fund vs. Multiple Hedge Funds -- 5. Acquiring In House Talent vs. Deploying Capital In Outside Funds -- Hedge Fund Alpha Tear Sheet - Chapter 9.

End Notes -- References -- 10. Fund of Hedge Funds Jeffrey Glattfelder, John Longo and Stephen Spence -- 1. History of Fund of Funds (FoF) -- 2. Objective of Fund of Funds -- 3. Advantages and Disadvantages of Fund of Funds -- 4. Taxation of Fund of Funds -- 5.1 Fund of Funds vs. Direct Investment -- 5.2 Fund of Funds vs. Multistrategy Funds -- 5.3 Fund of Funds vs. Portfolio of Managed Accounts -- 6. Historical Performance of Fund of Funds -- 7. Investment Process -- 7.1 Strategy Allocation -- 7.2 Fund Sourcing -- 7.3 Fund of Funds Portfolio Construction and Rebalancing -- 7.4 Risk Management of Fund of Funds -- 8. Recent Developments -- 8.1 Registered Fund of Funds -- 8.2 Impact of Longer Individual Manager Lockups on Fund of Funds -- 8.3 Theme Oriented Fund of Funds -- 8.4 Leveraged Fund of Funds -- 8.5 Derivatives on Fund of Funds -- Hedge Fund Alpha Tear Sheet - Chapter 10 -- End Notes -- References -- Part II: Understanding Performance -- 11. The Psychology of Hedge Fund Managers John M. Longo -- 1. Introduction -- 2. The Relationship Between Hedge Fund Manager Investment Performance and Emotions -- 3. The Importance of Positive Monthly Returns -- 4. The Call Option Nature of Hedge Fund Compensation -- 5. Behavioral Finance and Hedge Fund Managers -- Hedge Fund Alpha Tear Sheet - Chapter 11 -- End Notes -- References -- 12. Risk Management for Hedge Funds Saad Rathore -- 1. Overview -- 2. Risk Management as a Source of Superior Returns -- 3. Distinction Between Trading and Investing -- 4. Trading Risk Management -- 4.1 Risk Management and Conventional Wall Street Wisdom -- 4.2 Risk Management and Profit and Loss (P&L) Analysis -- 4.3 Impact Ratio -- 4.4 Kelly Formula for Position Sizing -- 4.5 Drawdown Analysis -- 4.6 Correlation Analysis -- 5. Investment Risk Management -- 5.1 Sharpe Ratio -- 5.2 Treynor Measure -- 5.3 Jensen's Alpha.

5.4 Sortino Ratio.