The Hedge Fund Book: A Training Manual for Professionals and Capital-Raising Executives
By Richard C. Wilson
Hedge funds are a subject which needs continuous study and research to deduce how they actually operate, raise capital and invest. The Hedge Fund Book, written by seasoned author and successful hedge fund consultant Richard C Wilson, is an excellent reference manual that provides lucid, practical advice which is useful not only to beginners in this field but for hedge fund managers as well. Each chapter in the book starts with a concise overview and gives an in-depth study of the hedge fund industry- covering start-ups to giant hedge funds, the best practices and due diligence followed, and operations and support used. The book is replete with interesting real life case studies- interviews with real life hedge fund managers who dole out crucial advice, giving a deeper insight into the working of hedge funds. This section is particularly useful for aspiring hedge fund professionals who look to inculcate best practices in this field.
Here is a lowdown on the different aspects of the book which are particularly helpful:
- The chapters provide a detailed look on the different types of investments and situational analyses along with a succinct summary of the important points. A quick reading equips you with sufficient enough knowledge to engage in discussions about the hedge fund industry.
- The case study format provides rich guidance and a deeper background on the subject straight from the horse’s mouth- interviews with people who actually work in the industry. The interviews provide the reader a comprehensive list of do’s and don’ts that is essential when starting a hedge fund.
- The FAQs and resources section, along with the questionnaire on due diligence, are especially useful for the valuable advice they provide. Most of the advice in the book is solid, practical stuff that can be applied to the real world. There is no peddling of dry academic theories or lengthy monologues that advise on exercising caution in this industry. Also, there are several links and references to recommended material which should be definitely read. However, some of the video links are outdated and do not work, which is a drawback.
- This book is required reading for the Hedge Fund group CHP1 certification and is also beneficial for finance professionals looking to work in a hedge fund in the near future. The lucid manner of the book makes it easy to read for all.
Raising capital for hedge funds is no easy task. The only way forward is to research and improve in order to establish a successful hedge fund. While aiming to build a hedge fund, there are several considerations that have to be kept in mind. Usually, there are simple and forsaken steps which tend to be ignored for herculean endeavors. Overall, The Hedge Fund Book provides a lot of informative insights in the dealing and structure of hedge funds and collates useful anecdotal evidence coupled with detailed studies on the subject. Definitely a must buy for any professional or student looking to form a hedge fund.
Review by Geetika Sachdeva