Hedge Funds: Structure, Strategies, and Performance

by H. Kent Baker, Greg Filbeck

Overview

Hedge Funds: Structure, Strategies, and Performance provides a synthesis of the theoretical and empirical literature on this intriguing, complex, and frequently misunderstood topic.

The book dispels some common misconceptions of hedge funds, showing that they are not a monolithic asset class but pursue highly diverse strategies. Furthermore, not all hedge funds are unusually risky, excessively leveraged, invest only in illiquid asses, attempt to profit from short-term market movements, or only benefit hedge fund managers due to their high fees. Among the core issues addressed are how hedge funds are structured and how they work, hedge fund strategies, leading issues in this investment, and the latest trends and developments.

The authors examine hedge funds from a range of perspectives, and from the theoretical to the practical. The book explores the background, organization, and economics of hedge funds, as well as their structure. A key part is the diverse investment strategies hedge funds follow, for example some are activists, others focusing on relative value, and all have views on managing risk. The book examines various ways to evaluate hedge fund performance, and enhances understanding of their regulatory environment. The extensive and engaging examination of these issues help the reader understands the important issues and trends facing hedge funds, as well as their future prospects.

Product Details

ISBN-13:	9780190607371
Publisher:	Oxford University Press
Publication date:	08/23/2017
Series:	Financial Markets and Investments
Pages:	696
Sales rank:	737,186
Product dimensions:	6.10(w) x 9.30(h) x 1.80(d)

About the Author

H. Kent Baker is a University Professor of Finance in the Kogod School of Business at American University. As one of the most prolific finance academics, Professor Baker has authored or edited 26 books and has published more than 160 refereed articles in such journals as the Journal of Finance, Journal of Financial and Quantitative Analysis, Financial Management, Financial Analysts Journal, and Journal of Portfolio Management. He has consulting and training experience with more than 100 organizations. Professor Baker holds a BSBA from Georgetown University; M.Ed., MBA, and DBA degrees from the University of Maryland; and an MA, MS, and two PhDs from American University. He also holds CFA and CMA designations.

Greg Filbeck is a Samuel P. Black III Professor of Finance and Risk Management at Penn State Behrend and serves as the Interim Director for the Black School of Business. Professor Filbeck has authored or edited seven books and published more than 90 refereed academic journal articles appearing in the Financial Analysts Journal, Financial Review, and Journal of Business, Finance, and Accounting. He received a BS from Murray State University; an MS from Penn State University, and a DBA (finance) from the University of Kentucky. He also holds the CFA, FRM, PRM, CIPM, and CAIA designations.

Table of Contents

Contents

List of Figures
List of Tables
Acknowledgments
About the Editors
About the Contributors
Abbreviations

Part One INTRODUCTION
1. Hedge Fund Fundamentals
H. Kent Baker and Greg Filbeck

2. The Economics of Hedge Funds
Shantanu Dutta, Arup Ganguly, and Lin Ge

3. The Life Cycle of Hedge Funds: A New Perspective
Mila Getmansky and Rachel (Kyungyeon) Koh

4. Characteristics of Successful Hedge Fund Managers
Ashrafee T. Hossain, Samir Saadi, and Maxim Treff

Part Two STRUCTURE OF HEDGE FUND

5. Hedge Fund Organization
Douglas Cumming, Na Dai, and Sofia Johan

6. Hedge Fund Governance
Lamia Chourou, Ashrafee T. Hossain, and Samir Saadi

7. Activist Hedge Funds
Tony Calenda, Chris Milliken, and Andrew C. Spieler

8. The Tax Framework of Hedge Funds
François-Serve Lhabitant and Michel Brocard

9. Compensation and Incentives in Hedge Funds
Garrett C. C. Smith and Gaurav Gupta

10. Off Shore Hedge Funds
Roberto J. Santillán-Salgado and Juan José García-Santos



Part Three INVESTMENT STRATEGIES OF HEDGE FUNDS

11. Directional Equity Hedge Fund Strategies
Oreste Auleta and Filippo Stefanini

12. Event Driven Hedge Fund Strategies
Caroline Farrelly and François-Serge Lhabitant

13. Global Derivatives Hedge Fund Strategies
Christopher Barnes, Ehsan Nikbakht, and Andrew C. Spieler

14. Relative Value Hedge Funds Strategies
George Dikanorov, Joseph McBride, and Andrew C. Spieler

15. Multi-strategy Hedge Funds
Paul-Henri Bayart-De-Germont and Daniel Capocci

Part Four RISKS AND REGULATION

16. Risk Measurement and Management for Hedge Funds
Guillaume Weisang

17. Hedge Funds and Systemic Risk
Wulf A. Kaal and Timothy A. Krause

18. Operational Risk Management for Hedge Funds
Claus Huber and Daniel Imfeld

19. Hedge Fund Due Diligence
Jason Scharfman

20. Hedge Fund Regulation
Wulf A. Kaal and Dale Oesterle

Part Five HEDGE FUND PERFORMANCE

21. Issues in Hedge Fund Research
Thuy Bui and Abhishek Ganguly

22. Hedge Fund Pricing
David Hampton

23. Evaluating Hedge Fund Performance
David M. Smith



24. Financial Crises and Evaporating Diversification Benefits of Hedge Funds
Monica Billio, Mila Getmansky Sherman, and Loriana Pelizzon

25. Hedge Fund Replication
Paul Lajbcygier and Mikhail Tupitsyn

26. Hedge Funds and Performance Persistence
Nan Qin and Ying Wang

27. Benchmarking and Bias in Hedge Funds
Jeffrey S. Smith, Kenneth Small, and Phillip Njoroge

28. Style Analysis and Consistency
William R. McCumber and Jyotsaana Parajuli

Part Six ISSUES, TRENDS, AND FUTURE PROSPECTS OF HEDGE FUNDS

29. Current Hedge Fund Debates and Controversies
Dianna Preece

30. Trends and Future Prospects of Hedge Funds
Hunter M. Holzhauer

Discussion Questions and Answers
Index

Editorial Reviews

"Anyone with an interest in hedge funds and hedge fund investing will find this book a useful, unbiased, comprehensive overview and critical information resource... Baker and Filbeck provide a valuable, in-depth resource and reference collection of articles exploring the complicated and significant role hedge funds represent in today's financial markets." — S. R. Kahn (University of Cincinnati), Choice Reviews Vol 55.

"This is a highly readable overview of the structure, strategies, and performance of hedge funds that can be used as a text, as a reference, or simply as a way to thoroughly understand the hedge fund industry."

— Roger Ibbottson, Chairman and CIO of Zebra Capital Management, LLC. and Professor in Practice Emeritus at Yale School of Management

"This book is an excellent compilation of important articles by both scholars and practitioners revealing the mysteries of the secretive world of hedge funds. The unique blend of theory and practice in this book should serve as an invaluable resource for anyone interested in hedge funds. Highly recommended!"

— Vikas Agarwal, H. Talmage Dobbs, Jr. Chair and Professor of Finance at Georgia State University and J. Mack Robinson College of Business, Atlanta, USA

From the Publisher