The Prudent Investor’s Guide to Hedge Funds

Hedge funds are typically thought of as highly risky investments. Not so. In fact, some hedge funds are among the most conservative investments you can make. While speculative, high-flying hedge funds make the headlines, others quietly go about the work of crafting unique investment strategies and hedging portfolios against market risk.

Investors are often surprised to learn that the very first hedge fund was created more than 50 years ago as a conservative investment approach designed expressly to protect capital from market downturns. From this pioneering concepthas grown a $400 billion-plus industry–a relatively little-known corner of the investment world but one that attracts the best and brightest investment talent of our time. Drawn by the chance to invest with top money managers who find opportunity outside the market mainstream, individual and institutional investors alike are increasingly using hedge funds to boost portfolio returns while managing risk.

The Prudent Investor’s Guide to Hedge Funds shows why affluent investors who want to be financially secure through retirement should know about this frequently misunderstood investment vehicle. Written by an industry insider and bestselling financial author, this much-needed book takes the mystery out of hedge funds, answering key questions and delving into the minds of hedge fund managers and investors. Its blend of facts, practical tips, and sometimes startling insights will help you to not only understand the hedge fund phenomenon but also know which critical questions to ask before you invest.

Owen, an investment management professional, contends that hedge funds can be a sensible, conservative investment, in spite of their risky reputation. The text explores different kinds of hedge funds and describes how individuals can invest directly in individual hedge funds or gain exposure to an array of hedge fund strategies through a fund-of-funds approach. The strategies discussed are designed for wealthy individual investors who want to earn consistent, competitive portfolio returns, and would not be helpful for middle-income families saving for a house or college tuition. The book does not include a bibliography.
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Hedge funds are typically thought of as highly risky investments. Not so. In fact, some hedge funds are among the most conservative investments you can make. While speculative, high-flying hedge funds make the headlines, others quietly go about the work of crafting unique investment strategies and hedging portfolios against market risk. This much-needed book shows why affluent investors who want to be financially secure through retirement should know about hedge funds. Its blend of facts, practical tips, and personal insights takes the mystery out of this often misunderstood investment vehicle and reveals the critical questions to ask before you invest. James P. Owen (Santa Barbara, CA) has more than 30 years of experience in the investment management industry and is Senior Vice President of Broadmark Asset Management. Previously he was President of JPO Inc. and a partner with NWQ Investment Management Company. He is co-founder of the Investment Management Consultant s Association (IMCA); author of the financial bestseller, The Prudent Investor: The Definitive Guide to Professional Investment Management; and was associate producer of the PBS television series,Beyond Wall Street: The Art of Investing

'Praise for The Prudent Investor’s Guide to Hedge Funds

"Two thumbs up! If you’re thinking about putting money into a hedge fund, this is a must-read book."–E. Lee Hennessee, Chairman and Founder, Hennessee Group LLC

"Not only is this book highly informative, it’s entertaining. Jim Owen’s rich and colorful insights into the world of hedge funds should not be missed. A must-have book for the library of any serious investor." –William L. Asmundson, President and CEO, Rockefeller & Co., Inc.

"As a professional hedge fund investor, I find this book truly insightful. I highly recommend it." –Shakil Riaz, Managing Director and CIO, Capital Markets Investment Program, Chase Manhattan Bank

"Alfred would have loved this book!" –Robert L. Burch III Son-in-law of A.W. Jones (creator of the first hedge fund in 1949)

"An excellent primer on hedge fund investing." –Robert I. Schulman, President and COO, Tremont Advisers, Inc.

Please visit our Web site at www.wileyfinance.com '

'Acknowledgments.

Preface.

WHY CONSERVATIVE INVESTORS SHOULD KNOW ABOUT HEDGE FUNDS.

What\'s Wrong with Traditional Money Management?

How Did Investment Management Go Astray?

The Growing Appeal of Alternative Investments.

WHAT HEDGE FUNDS HAVE TO OFFER.

What Exactly Is a Hedge Fund, Anyway?

A Look at Hedge Fund Performance.

Narrowing the Field: \"The Big Four\" Strategies.

Is There a Hedge Fund Strategy for All Seasons?

MAKING HEDGE FUND INVESTMENTS.

Investing in Hedge Funds--How Much?

Tapping into the Wealth of Resources.

Selecting a Hedge Fund That\'s Right for You.

Getting Comfortable with the Terms of the Deal.

Staying on Top of Your Investment.

Closing Thoughts.

Index.'