Tactical Portfolios is a book designed to help investors, investment advisors, and anyone interested in alternative investments understand what hedge funds and liquid alternatives are and what they do. The book attempts to show different strategies hedge fund managers employ and how they work in a portfolio. We also walk the reader through the various service providers and regulations impacting the industry in the wake of the financial crisis.
The book closes with a discussion of what diversification and hedging really are in an effort to help investors avoid the potentially fatal flaw of exposure risk. I hope you find the text valuable and easy to read.
I would like to thank all of the managers who have been generous with their time and expertise, as well as the Opalesque editors, Opalesque Publisher Matthias Knab, and Olivier Blanchard, who gave me great starting advice for this book. Finally, I'd like to thank E'lona McCann for her advice and support.