Synopses & Reviews
"Do you find yourself wondering: How did we get here? How did the United States of America get into such a predicament whereby in one year, 2008, the financial system nearly vaporized, the stock market crashed, real estate tanked, and major corporations were being bailed out. . . .How did our great country, a bastion of capitalism, devolve into a Bailout Nation where the gains were privatized, but the losses were socialized?"—From the Foreword by Bill Fleckenstein
In Bailout Nation, Barry Ritholtz, author of the popular finance blog www.ritholtz.com/blog/, deftly mixes financial history with an insider's knowledge of modern finance to reveal how we've arrived at one of the worst economic crises ever. Engaging and informative, this book clearly shows how years of trying to control the economy with easy money has finally caught up with the United States and how the government's practice of repeatedly rescuing Wall Street—as well as other industries and organizations—has come back to bite them.
Divided into five compelling parts, this timely guide opens with a brief history of bailouts, detailing their particular patterns and unintended consequences. From here, it quickly moves on to reveal the events, individuals, and institutions that have shaped our current situation. You'll see how various government interventions—in individual companies such as Lockheed during the 1970s, in specific sectors such as banking in the early 1990s, and eventually, entire markets with the rescue of stocks in 2000—opened up a Pandora's Box. You'll also discover how the misguided philosophies of many players, from Fed Chairmen and Presidents to Senators and Treasury Secretaries, promoted the massive meltdown that has engulfed our global economy.
Ritholtz leaves no stone unturned, as he breaks down how the Federal Reserve's interest-rate targeting policies as well as a condition known as moral hazard—the belief that you won't bear the full consequences of your actions—perpetuated the reckless financial risk taking that has pushed us to the brink. Ritholtz also takes some of the biggest Wall Street firms—along with their enablers, the ratings agencies—to task. Page by page, you'll learn how the repeal of certain regulations allowed banks to merge into unruly financial behemoths, while unproven investment vehicles, including collateralized debt obligations (CDOs) and credit default swaps (CDSs), wreaked havoc on both the credit and housing markets.
The United States has abandoned its capitalist roots and become a Bailout Nation. The implications of this are significant and far-reaching. If you intend on navigating today's treacherous terrain, it would be wise to understand how we got here and what you need to get ahead. Scathing, but fair, Bailout Nation puts this financial debacle in perspective—through discussions of past miscues and an exploration of solutions being proposed-and offers a voice of reason during these uncertain economic times.
Review
"Best books to make sense of financial crisis of 2009"
(USA Today)"Best business books of 2009" (Miami Herald)
"Investment Book of the Year" (Stock Trader’s Almanac)
"Succeeds in laying out all that transpired in easy-to-understand language. If you want to know how we got into this mess and what might still be coming, this is the book for you." (Wall Street Journal)
"The author writes with the fury of an insider mortified by the behavior of his heretical peers . . . There is much to be said for the book’s irreverence. Mr. Ritholtz has written an important book about a complicated subject, and yet you could still read it at the beach. Here’s hoping that some policy makers in Washington take it with them on vacation this month." (New York Times)
"Ritholtz makes a valuable new contribution to our understanding of how we arrived at this sorry juncture. He’s smart, sassy and often amusing. If you’re looking for an all-in-one place explanation of what went wrong and why, this is the book for you (or your confused neighbor)." (Bloomberg)
"Bailout Nation’s straightforward, compelling account puts the crisis in context, explains why the US government responded so stupidly, offers solutions, and advises how to prevent a repeat. Ritholtz’s indictment of the financial and political establishment is devastatingly accurate." (Asia Times)
"Before the housing and credit bubbles popped, Barry Ritholtz, a lawyer turned blogger and money manager, was one of the voices crying in the wilderness. His caustic (and occasionally profane) blog, The Big Picture, dissected macroeconomic news and relentlessly cut through spin. His book takes a long view of the roots of the economic crisis, tracing the history of a series of ever more expensive taxpayer-funded bailouts of failed industries." (Newsweek)
"Ritholtz’s book seeks to explain how the United States, once so proud, became "a nanny state for well-paid bankers. Ritholtz may be just the right person to explain the transition to both the disillusioned amateur and the finance junkie. He doesn’t pull his punches or bury the truth in layers of finance-speak, caveats, and disclaimers. Since he began blogging seven years ago, in-the-know readers of his popular blog, The Big Picture, have turned to Ritholtz for his prescient, refreshingly honest commentary on the economy. Anyone interested in understanding the roots of our current crisis should check out the book.." (Freakonomics)
"A comprehensive crisis scrapbook compiled by the money manager behind the popular financial blog the Big Picture in a quippy, no-nonsense voice..." (New York Magazine)
"These are some of the provocative and even dangerous questions that Barry Ritholtz takes on in Bailout Nation…Above all, Bailout Nation is about the socialization of risk and the privatization of profits." (Forbes)
Synopsis
An accessible guide to effectively operating in the hedge fund arenaHedge funds are now in the news more than a thousand times a day and yet it is hard to find clear, factual information about how they operate, raise capital, and invest. The Hedge Fund Book provides real-world case studies of various hedge fund managers providing a solid foundation in specialized hedge fund knowledge for both financial professionals and those aspiring to enter this field.
It provides an analysis of funds within different phases of their life cycles and investment processes, and examines each cycle in ways that would be informational for marketers as well as investors, bankers, and financial professionals who would like to learn more about day-to-day hedge fund operations
- Addresses everything you need to know about this popular segment of the financial industry within a case study format
- Each chapter contains several types of investment and situational analyses, insights and best practices along with a review and "test your knowledge section"
- Written by a successful hedge fund consultant and head of one of the largest hedge fund networking groups in the industry with more than 30,000 members
- This book is required reading for participants within the hedge fund industry's leading designation program, the CHP Designation
If you're looking to gain a better understanding of hedge funds, look no further than The Hedge Fund Book.
Synopsis
Hedge funds are now in the news more than a thousand times a day, and yet it's hard to find clear, factual information about how they actually operate, raise capital, and invest.
That's why author Richard C. Wilson—head of the largest hedge fund networking group in the industry—has created The Hedge Fund Book. Filled with extensive interviews of various hedge fund managers, real-world case studies, review questions, and much more, this one-of-a-kind resource provides a solid foundation in specialized hedge fund knowledge for both financial professionals and those aspiring to enter this field.
Page by page, The Hedge Fund Book offers expert analysis of funds within different phases of their life cycles and investment processes, and examines each cycle in ways that would be informative for marketers as well as investors, bankers, and financial professionals who would like to learn more about day-to-day hedge fund operations. Along the way, this accessible guide will show you:
How hedge fund managers can immediately increase their operational effectiveness
Over 100 ways you can improve your hedge fund business or marketing processes with direct advice and interviews with industry veterans and hedge fund managers
Why most hedge fund managers struggle to raise capital and how being proactive within the right areas can allow a small team to raise a large amount of capital
How to implement governance best practices that will improve investor confidence, enhance decision-making processes, and decrease the risk of some types of fraud
How hedge funds are improving their business structure and processes without spending millions on infrastructure
How to start a hedge fund without over-spending or killing your chances of raising capital in the future
How to emulate the best practices of larger hedge funds, which have learned many lessons the hard way
Along with the information found here, there is also a series of over fifty video resources that act as a supplement to this training manual. Throughout the book, there are references to these resources, and the complete list of videos available may be seen at HedgeFundTraining.com/Videos.
Whether you're looking to gain a better understanding of hedge funds from a professional perspective or studying for the Certified Hedge Fund Professional (CHP) Designation Program, this book has the information you need to succeed in such a fast-moving field.
Synopsis
Praise for The HEDGE FUND BOOK"I read Richard Wilson's book prior to launching my first hedge fund. Thanks to the book, we successfully launched the fund and raised the needed capital in record time. The book made the process, from choosing administrators to approaching investors, far easier."
—Craig Nelson, Managing Director of Prima Equity Partners
"This is the most comprehensive resource on the hedge fund industry that I've seen put into print."
—Matt Recore, Recore Capital Growth Fund LLP
"This book saves a lot of time, energy, and money by teaching hedge fund marketing in a practical way. Hedge fund managers who read this book will move up the learning curve at a much more rapid pace compared with those who do not."
—Hendrik Klein, CEO, Da Vinci Invest AG
"There is not a more current, critical, and revealing book out there now about the future of the hedge fund industry. Packing in knowledge from leading hedge fund experts, Wilson has compiled a treasure chest of information and best practices useful to anyone interested in breaking into the industry or starting up a fund in this new climate."
—Scott Cohen, CPA, President, Hedge Solutions
"Richard really captures all facets of running a hedge fund. The interview format and Q & A at the end of each chapter make it easy for someone outside the industry to learn about the alternative space. This book is a must-read for anyone looking to start a hedge fund."
—Lance Baraker, Co-Head of TradeStation Prime Services
Synopsis
An engaging look at what led to the financial turmoil we now find ourselves inBailout Nation offers one of the clearest looks at the financial lenders, regulators, and politicians responsible for the financial crisis of 2008. Written by Barry Ritholtz, one of today's most popular economic bloggers and a well-established industry pundit, this book skillfully explores how the United States evolved from a rugged independent nation to a soft Bailout Nation-where financial firms are allowed to self-regulate in good times, but are bailed out by taxpayers in bad times.
Entertaining and informative, this book clearly shows you how years of trying to control the economy with easy money has finally caught up with the federal government and how its practice of repeatedly rescuing Wall Street has come back to bite them.
- The definitive book on the financial crisis of 2008
- Names the culprits responsible for this tragedy-from financial regulators to politicians
- Shows how each bailout throughout modern history has impacted what happened in the future
- Examines why the consumer/taxpayer is left suffering in an economy of bubbles, bailouts, and possible inflation
- Ritholtz operates a hugely popular blog, www.ritholtz.com/blog
Scathing, but fair, Bailout Nation is a voice of reason in these uncertain economic times.
Synopsis
Praise for BAILOUT NATION"A beam of enlightened thinking in a sea of delusional complacency."
—Nouriel Roubini
"If you want to know how we got into this mess, then Ritholtz's Bailout Nation is where you should begin. He chronicled the collapse from the beginning with a rare clarity, and that shines through in this book."
—Chris Anderson, author of The Long Tail
"One of the biggest myths of the great credit debacle of 2008 is that nobody saw it coming. Bull. Barry Ritholtz did. In Bailout Nation, Ritholtz throws our current travails into historical relief. For those who want to know how we got to this miserable place—and who want to have fun doing it—this is essential reading."
—Daniel Gross, Newsweek and Slate
"Highly entertaining rants against the stupidity of our biggest financial institutions. Ritholtz brings intelligence and moral outrage to this book."
—Rex Nutting, MarketWatch
"Nobody in the financial punditry world has been 'righter' about the economic crisis unfolding than Barry. If there was such a thing as a financial pundits Hall of Fame, he would have to be an inaugural inductee. Ignore Bailout Nation at your own peril."
—Tobin Smith, founder, ChangeWave Research, and Contributing Market Analyst, Fox News
"Bailout Nation provides an easily understandable and vividly descriptive road map as to how our domestic economy got into the rut we are now in ... It is a must-read for serious students of financial history ... and for all investors in bonds and stocks who want to preserve and grow their capital in the future!"
—Doug Kass, Seabreeze Partners, Real Money.com, CNBC
About the Author
RICHARD C. WILSON is a hedge fund consultant and head of the Hedge Fund Group, the largest hedge fund networking group in the industry. He is also the creator of the successful Web site HedgeFundBlogger.com. Wilson writes a daily article on the hedge fund industry for the site, as well as straightforward educational pieces on hedge fund strategies, terms and definitions, trends, interviews, videos, and book reviews. He also founded and holds two 100% online training sessions for the Certified Hedge Fund Professional (CHP) Designation Program, a professional certification program catering to professionals in the hedge fund industry.
Table of Contents
Preface xi
My Story xii
Disclosure of Financial Interests xiii
Acknowledgments xv
Introduction 1
CHAPTER 1: Hedge Fund Fundamentals 5
Hedge Fund Mechanics and Statistics 6
History of Hedge Funds 8
Media Portrayal of Hedge Funds 9
Hedge Fund Ecosystem 10
Future of the Hedge Fund Industry 13
Chapter Summary 13
Review Questions 14
CHAPTER 2: Institutionalization and Operations 17
Stephen Abrahams, Vice President of Marketing for a London-Based Hedge Fund 18
Bob Pardo, CEO and President, Pardo Capital Limited 19
Vinod Paul, Managing Director of Service and Business Development, Eze Castle Integration 21
Nakul Nayyar, Quantitative Trading/Support, Quad Capital 24
Hendrik Klein, CEO, Da Vinci Invest Ltd. 26
Sheri Kanesaka, Associate, Michelman & Robinson, LLP 29
Eric Warshal, CEO, Fund Associates 30
Lance Baraker and William Katts, Senior Managing Directors, TradeStation Prime 32
Chapter Summary 36
Review Questions 36
CHAPTER 3: Hedge Fund Marketing Pro 39
Bad News 40
Public Relations Management 41
Educational Marketing 42
Forget about Contacting More Investors 43
E-Mail Marketing Best Practices 45
Copy Writing 49
Case Profile 50
Stephen Abrahams, Vice President of Marketing for a London-Based Hedge Fund 54
Pratik Sharma, Managing Director, Atyant Capital 55
Hendrik Klein, CEO, Da Vinci Invest Ltd. 59
Chapter Summary 60
Review Questions 61
CHAPTER 4: The Shooting Star 63
18 Lessons from Shooting Star Hedge Funds 63
Rick Nummi, Partner and General Counsel, Accounting and Compliance International (ACI) 65
Thomas Powell, Chief Executive Officer, ELP Capital 72
Chapter Summary 74
Review Questions 74
CHAPTER 5: Hedge Fund Start-Up Guru 77
Top Five Tips for Starting a Hedge Fund 78
Hedge Fund Pitch Book Creation 80
Syed Ali, CEO, Saturn Partners, LLC 81
Nakul Nayyar, Quantitative Trading/Support, Quad Capital 86
Chapter Summary 89
Review Questions 90
CHAPTER 6: Dedicated to Due Diligence 93
Scott Freund, President, GCC Family Wealth Management 94
Brian Reich, President and Founder, Atrato Advisors LLC 95
Richard Wilson, Hedge Fund Group, CHP Designation, HedgeFundBlogger.com 98
Due Diligence Effects on Hedge Funds 102
Chapter Summary 105
Review Questions 106
CHAPTER 7: Giant Hedge Funds 109
Best Practices from $1 Billion-Plus Hedge Funds 109
Richard Zahm, Portfolio Manager, Second Angel Fund 111
Scott Cohen, President and CEO, Hedge Solutions 117
Chapter Summary 119
Review Questions 120
CHAPTER 8: Governance Best Practices 123
Andrew Main, Managing Partner, Stratton Street Capital LLP 124
David R. Koenig, CEO of the Governance Fund, LLC 130
Chapter Summary 134
Review Questions 134
CHAPTER 9: Frequently Asked Hedge Fund Questions 137
Hedge Funds 101 137
Hedge Fund Operations 139
Hedge Fund Marketing and Sales 142
Hedge Fund Careers 156
APPENDIX A: Bonuses of $1,779 169
APPENDIX B: Example Due Diligence Questions 171
Questionnaire 171
APPENDIX C: Top Hedge Fund Web Sites 177
Glossary 179
About the Author 185
Index 187
Contact the Author 191