Hedge funds have gone from obscurity to the mainstream in a very short period of time. Their ascent in the marketplace may have been rapid, but make no mistake, these innovative investment vehicles are here to stay. Understanding the intricacies of hedge funds can put you in a better position to profit from them—and no one is more qualified to advise you on this subject than author Daniel Strachman.

Whether you’re an investor looking to find the hedge fund that’s right for you; a new hedge fund manager in need of tips on choosing an attorney or an administrator; or a veteran hedge fund manager eager to learn from—and avoid—the fiascos that have recently brought down some of the biggest names in the business, The Long and Short of Hedge Funds has what you need to succeed in this competitive field.

In his previous book, The Fundamentals of Hedge Fund Management, Strachman skillfully explained how this investment vehicle comes to life and operates as a business. Now, with The Long and Short of Hedge Funds, he takes some time to review those important concepts, but quickly moves on to address the essential issues of hedge fund evaluation and investing.

Strachman opens with an engaging discussion of the past, present, and possible future of the hedge fund industry, and then reveals how legendary hedge fund managers—from George Soros to Julian Robertson—have leveraged alpha-generating strategies to capture above average returns in their investment endeavors. And while you’ll discover how the best fund managers in the world take a dollar and put it to work in the marketplace, along the way, you’ll also become familiar with:

• How to take advantage of opportunities related to the evolution, creation, and development of a hedge fund organization
• Why some funds make money regardless of market conditions—and why others don’t
• How hedge funds gather assets
• The critical role that hedge fund service providers play in the success or failure of a hedge fund management company
• How investors seek out and find hedge fund investments
• Hedge fund frauds and blow ups, and how to protect yourself from them

Filled with reliable research and expert advice, The Long and Short of Hedge Funds provides you with a comprehensive view of how hedge funds work from both the manager’s and investor’s perspective. Read it today and discover how to apply proven money management principles to your own firm, the fund you work for, or the investments in your personal account.

Praise for THE LONG AND SHORT OF HEDGE FUNDS

“Once again, Dan Strachman pierces the veil of secrecy to provide us with razor sharp insights into the world of hedge funds. This is an important read for all who are interested in this fascinating corner of the financial services industry.”
—Peter W. Testaverde Jr., Partner, McGladrey & Pullen LLP

“I found Dan’s new book to be an excellent guide to hedge fund investing, with its appropriate focus on risk management, fund transparency, and investor due diligence. His concise writing style gives us a clear picture of these often misunderstood investment vehicles.”
—James Collins, Executive Vice President and Treasurer/Chief Investment Officer, Clark University

“Strachman explains hedge fund investing for both first-time and seasoned hedge fund investors in order to understand how money is managed. You will learn what to look for, evaluate, and use to make informed and intelligent decisions about hedge funds and the managers who operate these investment vehicles.”
—Richard Bookbinder, Managing Member, Bookbinder Capital Management LLC

As capital markets continue to evolve, and become more efficient, investors are experiencing a moderation of returns. This has put many institutions, and individuals, in the difficult position of finding better ways to increase portfolio performance without increasing risk. In Fund of Funds Investing, hedge fund expert Daniel Strachman and fund of funds manager Richard Bookbinder provide you with the information needed to achieve this elusive goal.

Written in a straightforward and accessible style, Fund of Funds Investing offers a unique overview of this often misunderstood and opaque area of the investment marketplace. Through a series of high-level interviews, as well as direct industry experience, Strachman and Bookbinder explain the how’s and why’s of fund of funds investing, while providing you with the insights needed to make solid decisions about them—including how a fund of funds may fit into one’s portfolio.

Whether you’re just beginning to look for an entry point into the fund of funds arena or have a firm understanding of how they operate, this reliable resource has what you need to succeed. Page by page, it addresses essential issues including:

• How diversifying through fund of funds investing can deliver specific risk/return profiles unattainable through single manager investing
• Fund structures and fees
• Why the need for due diligence does not diminish when investing in a fund of funds
• The factors that affect alpha generation in an uncorrelated portfolio

And much more about investing, the markets, and the mayhem of 2008

Along the way, this book also looks back at the history of the fund of funds industry and examines where the industry is today—in the wake of Madoff, the credit crisis, and the failure of many hedge fund managers to perform during the extreme volatility of 2007, 2008, and even 2009.

Fund of funds will continue to grow in importance over the coming years. In order to effectively understand and evaluate these investments, you need the practical guidance that can only be found in Fund of Funds Investing.

Praise for Fund of Funds Investing

“This book is a clear, practical description and guide to fund of funds investing. Written by two experienced professionals, it will be a valuable tool for both individual and professional investors.”
—William Michaelcheck, Chairman and Chief Investment Officer, Mariner Investment Group

“Fund of Funds Investing provides a wealth of information for any investor looking to initiate, maintain, or expand their hedge fund investments.”
—Jay D. Levy, CPA, Partner and Financial Services Industry Co-Practice Director, J.H. Cohn LLP

“Strachman and Bookbinder have produced a real gem in Fund of Funds Investing. In plain, straightforward language, the authors demystify hedge funds, modern portfolio theory, the risks of alternative investing, and complex fund of funds structures. Seasoned industry professionals will keep it handy as a primer on how to explain these arcane concepts to their clients; the novice will use it to get a leg up. A must-read.”
—Gregory J. Nowak, Esq., Partner, Pepper Hamilton LLP

“Fund of Funds Investing is a must-read for those new to hedge funds, providing a strong primer on the fund of hedge funds investment model. The book is also valuable for the experienced investor, touching on a broad range of topics, with interesting perspective for the reader, especially following the cataclysmic events of 2008.”
—Virginia Reynolds Parker, CFA, Managing Member and Chief Investment Officer, Parker Global Strategies, LLC

Long considered the exclusive realm of the rich and privileged, in recent years hedge funds have become a fixture of investment portfolios of all sizes. The industry is stronger than ever and primed for even greater growth, making now the perfect time to set up your own fund. The Fundamentals of Hedge Fund Management, Second Edition shows you how, bringing together everything you need to know to build, maintain, and reap the rewards of a high-performance hedge fund business.

With over a decade of international experience consulting on hedge funds, author Daniel Strachman knows exactly what it takes to succeed in the industry. Packed with essential information on how to make good decisions when building and managing a fund, how to develop a marketing strategy that will help you raise assets, how to create an infrastructure to support your business, and much more, this is the only resource you need to launch and grow a successful hedge fund business, for yourself or your clients.

Fully revised and updated to address recent developments, the book includes new and expanded coverage of how the credit crisis, legislation, fraud, technology, investor demand, global markets, and the economic landscape have affected hedge funds, giving you an up-to-date overview of the state of the industry, as well as information on what lies ahead. Written in a straightforward and accessible style and incorporating real-world examples, this second edition explains exactly what you need to do to build a hedge fund that will create and preserve wealth.

The hedge fund industry is changing fast. Now more than ever, new and profitable opportunities are available to investors regardless of background. To make the most of them, you need a solid understanding of how the industry operates?and how to make it work for you. The Fundamentals of Hedge Fund Management, Second Editiondoes just that, providing you with the tools and techniques you need to start and sustain a hedge fund of your own.