Hedge Fund of Funds Investing: An Investor’s Guide
By Joseph G. Nicholas
Looking to navigate the waters of the hedge fund market? It can be a tumultuous and risky endeavor, knowing what funds to invest in, market strategies, as well as grouping multiple funds to maximize your investment; Joseph G. Nicholas has done the due diligence to give you a straightforward guide on the emerging hedge fund market.
This quick, informative read will give readers valuable insight into the innovative hedge fund field. Joseph G. Nicholas breaks down key characteristics, essential information, and risk avoidance techniques in one digestible read without inundating the newcomer.
The book is broken down into three main parts, making its information highly accessible, don’t let the short page count fool you, the book is pedagogical in its scope; taking the reader through an introduction of the hedge fund market, the history of its performance, and approaches to selecting your own funds for investment.
- Chapter 1 is an education on the hedge fund industry itself, hedge fund investment options, industry characteristics, and hedge fund investment structure are all covered concisely.
- Chapters 2-3 provide an informative briefing on hedge fund investment strategies, covering arbitrage, emerging markets and market timing. The reader will also be introduced to the mechanics of hedge funds and their inherent two-tiered structure.
- Chapter 4 commences with the advantages and disadvantages of hedge funds with a sharp attention to diversification, due diligence, and risk management skills needed to succeed in the hedge fund market.
- Chapters 5-6 give the reader a peak at how hedge funds can perform for them, with an engaging look at the history of hedge funds, sub-strategies, performance during negative market periods, as well as capital preservation. The author also provides an overlook of creating a hedge fund portfolio with traditional assets.
- Joseph G. Nicholas arbitrates the process of fund selection in Chapter 7, by analyzing your objectives and parameters, the author helps the reader to create their own short list of funds with which to diversify their investment.
- Chapters 8-10 cover proper due diligence when selecting hedge funds, covering information to be obtained by potential investors such as background company information, company structure, product information and its relative performance. The chapters also let the reader see issues in due diligence pertaining to areas of risk management and portfolio management.
- Chapter 11 contains a case study so the reader can observe the lessons learned form the previous chapters actualized in a real-world scenario. Following the final chapter, the author has included some very valuable appendices with excerpts form industry reports and a due diligence questionnaire.
The book has been highly revered by members of the financial community at all skill levels, praising it as a piercing look into the filed of hedge fund markets. Financial outlets have have found its informative and concise nature to be highly useful.
Whether you’re a seasoned capital manager or a new investor, set yourself up for success by purchasing Joseph G. Nicholas’s: Investor’s Guide.
Reviewed by: William Oscar Updyke