Please enable JavaScript.
Coggle requires JavaScript to display documents.
More Money Than God: Hedge Funds and the Making of A New Elite (The Alpha…
More Money Than God: Hedge Funds and the Making of A New Elite
The Alpha Game
first hedge fund manager = alfred winslow jones
What is hedge fund? Definition needs to stress independence
Ok, hedge funds failed in 1994 by aggressive reaction to Fed IRs, but they serve role in countering innefficiencies in mkt
Banks, on other hand, don't have incentive to avoid excessive risk bc systemic guarantee of capital, but HFs must bc rely on investment performace
banks rely on underwriting and advisory fees as well
Capitalism only works when institutions absorb risks they take
Strategies of typical hedge fund
buy promising stock/financial instruments and short unpromising
Performance fees
focus on many differnet assets (stocks, bonds, derivatives, etc)
Hedge fund managers notorious for making more money than large bank CEOs when grouped together respectivley
EMH doesn't exist to Hedge funds
much criticism especially after 1987 crash btwn academics
even Eugene Fama found nonrandom patterns in pricing during his research
Big Daddy
Alfred Jones: borrow money and leverage "war chest" to double down on profitable investment
very political with marxism
wrote paper in 1948 featured on FORTUNE to disintegrate FDRs statist policies and preserve free mkt
Hedging: lower mkt risk and lower stock selection risk while still getting higher return
if index or exchange increases, then w/ proper proportioning of investing and short selling, investor can make a lot more money than traditional
traditional: invest in good stocks then put reset in bonds, which are safer
Block Trader
Paul Samuelsen's Secret
The Alchemist
Top Cat
Rock and Roll Cowboy
White Wednesday
Hurricane Greenspan
Soros vs Soros
Enemy is US
Dot Com Bubble
Yale Men
Code Breakers
Premonitions of a crisis
How Could They Do this?
Scarier than what?