References
Introduction
1 To be fair, some of this income comes from gains made by investing directly in their own funds. They are eating their own cooking.
2 Reported in New York magazine, April 2007.
3 Bernstein, P., Capital Ideas Evolving, John Wiley & Sons, May 2007.
4 There are problems with these indices, which are explained in Chapter 5.
1 Hedge fund taxonomy
1 Other people would carve up the industry in different ways. The fund-of-funds group Fauchier Partners divides the sector into two: relative value or arbitrage; and absolute value or directional.
2 It is impossible to do justice, in this guide, to the LTCM saga. Those who would like to know the full story should read either Inventing Money by Nicholas Dunbar (John Wiley, 1999) or When Genius Failed by Roger Lowenstein (Random House, 2001).
3 Drobny, S., Inside the House of Money, John Wiley, 2006.
4 Quoted in Bernstein, P., op. cit.
5 Efficient market theory states that all available information about an asset is reflected in its price. Thus the only thing that will move prices is news, which by definition cannot be known in advance. Attempting to beat the market by using information (particularly past price movements) should fail. Thus, if efficient market theory was correct, managed futures investing should not work.
6 Speaking at the GAIM conference in Monaco, June 2007.
7 ibid.
8 Brav, A., Jiang, W., Partnoy, F. and Thomas, R., Hedge Fund Activism, Corporate Governance and Firm Performance, October 2006.
3 Funds-of-funds ...
