In recent years, hedge funds have gained enormous popularity among institutional and high-net-worth investors–primarily because many of these investment strategies are now seen as a reliable alternative to an otherwise volatile and directionless group of capital markets. While hedge fund investing can be beneficial, particularly in the context of traditionally allocated portfolios, there are many potential pitfalls. Consultants and investors alike must be prepared for the increasing complexity of strategies and instruments associated with hedge funds, not to mention the increase in the number of managers.

Written by a leading team of investment advisors and hedge fund experts, and fully backed by the Investment Management Consultants Association (IMCA), Hedge Funds: Definitive Strategies and Techniques demystifies the subject of hedge fund investing and focuses on the most frequently used investment strategies associated with this alternative investment class.

Composedof ten information-packed chapters–each individually written by industry experts–Hedge Funds explores important issues that will allow you to clarify your future investment strategies and portfolio allocations. Editors Kenneth Phillips and Ronald Surz pull together the best minds in the hedge fund business to discuss:

• The current regulatory framework of the U.S. hedge fund market
• Various hedge fund strategies’ alpha generating properties
• Funds of hedge funds
• Evaluating the performance of hedge funds
• Convertible Arbitrage, Merger Arbitrage, and Fixed-Income Arbitrage
• Global Macro and Managed Futures funds
• Risk management of hedge funds
• And much more

The hedge fund industry is constantly evolving. What was a highly secretive asset class is moving into the mainstream with each passing day. However, as more managers and investors jump into the fray, there is bound to be more confusion and losses due to uninformed participants. If you want to gain a practical and complete understanding of today’s complex hedge fund industry, look to the experts within these pages. This comprehensive guide will help any serious professional employ some of the most effective hedge fund strategies currently available.

Hedge funds have experienced a resurgence since the downturn of the stock market. This survey gives readers the specific guidance they need to fully understand hedge fund investing.

Includes bibliographical references (p. 183-191) and index.

Praise for Hedge Funds

"This book couldn’t be more timely! With continued turmoil in the world economy and a prolonged equity bear market, investors want to understand the role hedge funds should play in their investment strategy. Hedge Funds helps demystify many of the ‘secrets’ of hedge funds and gives investment consultants and investors alike valuable perspective on how hedge funds work, how they are regulated, their risk/return profiles, and the role they should play in an investment portfolio."

–J. Richard Joyner

Partner, Ernst & Young LLP

"An excellent resource for the advisor who is interested in hedge funds for his/her clients."

–Phillip N. Maisano

Chairman and CEO, Evaluation Associates

The nonprofit INVESTMENT MANAGEMENT CONSULTANTS ASSOCIATION (IMCA) is the global professional association for investment consultants. Founded in 1985, IMCA is an organization whose mission is to promote education, ethics, and standards for the growing investment consulting profession, which provides consulting and advisory services to retirement funds, foundations, endowments, family offices, and wealthy individuals. IMCA bestows the Certified Investment Management Analyst (CIMA) certification on qualified investment consultants who complete a rigorous education program and agree to abide by IMCA standards. With over 5,000 members worldwide, IMCA hosts two national investment consultant conferences each year, along with seven regional conferences, and publishes the IMCA Journal of Investment Consulting and the IMCA Monitor.

KENNETH S. PHILLIPS is the Managing Principal of New York—based RCG Capital Partners, LLC. Mr. Phillips has more than twenty years’ experience as an institutional investment consultant and now serves as the senior portfolio manager to several funds of hedge funds. He has been involved in the evaluation, development, and implementation of complex investment strategies for institutional and high-net-worth investors since 1984. Mr. Phillips is an active member of IMCA and has been a member of IMCA’s Advisory Council, Chairman of its Communication Committee, and a member of its Editorial Board.

RONALD J. SURZ is owner and President of PPCA Inc., a firm specializing in innovative performance evaluation technologies for financial consultants. Prior to forming PPCA, he was managing director of institutional business development at Roxbury Capital Management, a principal at the institutional investment consulting firm Becker, Burke, and an executive Vice President at AG Becker where he was responsible for investment policy and asset allocation. He is a member of a number of investment committees and boards including IMCA’s Standards of Practice Board Chairman and their Editorial Board. He received his MBA in finance at the University of Chicago and his MS in applied mathematics at the University of Illinois.