Absolute Returns: The Risk and Opportunities of Hedge Fund Investing (Hardcover)

Acknowledgments ix

Preface xi

PART ONE The Hedge Fund Industry 1

CHAPTER 1 Introducing Absolute Returns 3

Appendix: Risk Illusion 56

CHAPTER 2 Myths and Misconceptions 59

Appendix: Press Coverage of Hedge Funds 93

CHAPTER 3 Difference between Long-Only and Absolute Return Funds 98

Appendix: Guatemalan Dentist 132

CHAPTER 4 Advantages and Disadvantages of Investing in Hedge Funds 134

Appendix: On Market Efficiency and Unorthodox Economics 159

PART TWO Risk and Opportunities of Absolute Return Strategies 177

CHAPTER 5 Classification and Performance of Hedge Funds 179

CHAPTER 6 Relative-Value and Market-Neutral Strategies 199

CHAPTER 7 Event-Driven Strategies 251

CHAPTER 8 Opportunistic Absolute Return Strategies 286

Appendix: Long/Short Controversy 361

PART THREE The Fund of Hedge Funds Industry 369

CHAPTER 9 Industry Overview 371

CHAPTER 10 Advantages and Disadvantages of Investing in Funds of Hedge Funds 401

CHAPTER 11 The Alpha in Funds of Hedge Funds 420

PART FOUR Going Forward 451

CHAPTER 12 Game of Risk or Risky Game? 453

Notes 479

References 484

Index 499

About the Author 514