The Hedge Fund Mirage - The Illusion of Big Money and Why It's Too Good to Be True

The dismal truth about hedge funds and how investors can get a greater share of the profits Shocking but true: if all the money that s ever been invested in hedge funds had been in treasury bills, the results would have been twice as good.

Klappentext:

The dismal truth about hedge funds and how investors can get a greater share of the profits

Shocking but true: if all the money that's ever been invested in hedge funds had been in treasury bills, the results would have been twice as good.

Although hedge fund managers have earned some great fortunes, investors as a group have done quite poorly, particularly in recent years. Plagued by high fees, complex legal structures, poor disclosure, and return chasing, investors confront surprisingly meager results. Drawing on an insider's view of industry growth during the 1990s, a time when hedge fund investors did well in part because there were relatively few of them, The Hedge Fund Mirage chronicles the early days of hedge fund investing before institutions got into the game and goes on to describe the seeding business, a specialized area in which investors provide venture capital-type funding to promising but undiscovered hedge funds. Today's investors need to do better, and this book highlights the many subtle and not-so-subtle ways that the returns and risks are biased in favor of the hedge fund manager, and how investors and allocators can redress the imbalance.
The surprising frequency of fraud, highlighted with several examples that the author was able to avoid through solid due diligence, industry contacts, and some luck
Why new and emerging hedge fund managers are where generally better returns are to be found, because most capital invested is steered towards apparently safer but less profitable large, established funds rather than smaller managers that evoke the more profitable 1990s

Hedge fund investors have had it hard in recent years, but The Hedge Fund Mirage is here to change that, by turning the tables on conventional wisdom and putting the hedge fund investor back on top.

Rezension:

'Simon Lack has become one of the hedge fund industry's most vocal critics thanks to his book, The Hedge Fund Mirage, which has enjoyed popularity beyond the rarefied hedge fund enclaves of Mayfair and Connecticut'. (Financial Times, 23rd April 2012) "The ideas in the book are of huge interest and utility to anyone who is interested in any kind of investment service, be it mutual funds, portfolio or wealth management services or even stock-broking." (Valueresearchonline.com, Jan 2012)
"Most investors would benefit from this book. Particularly those that advise institutional clients and high net worth individuals would benefit." (Alephblog.com, 14th January 2012)
"Most investors would benefit from this book. Particularly those that advise institutional clients and high net worth individuals would benefit." (Seeking Alpha, January 15, 2012)
"Offers advice on investing in hedges but also outlines a stark truth about the industry's performance." (Business Insider, 9th January 2012)
'Powerful...he does a brilliant job of explaining just why hedge funds represent such a poor investment class'. (African Business, May 2012)