The Alpha Masters: Unlocking the Genius of the World's Top Hedge Funds

by Maneet Ahuja, Mohamed El-Erian (Foreword by), Myron Scholes (Afterword)

Overview

The ultimate behind-the-curtain look at the hedge fund industry, unlocking the most valuable stories, secrets, and lessons directly from those who have played the game best.

Written by Maneet Ahuja, the hedge fund industry insider, The Alpha Masters brings the secretive world of hedge funds into the light of day for the first time. As the authority that the biggest names in the business, including John Paulson, David Tepper, and Bill Ackman, go to before breaking major news, Ahuja has access to the innermost workings of the hedge fund industry. For the first time, in Alpha Masters, Ahuja provides both institutional and savvy private investors with tangible, analytical insight into the psychology of the trade, the strategies and investment criteria serious money managers use to determine and evaluate their positions, and special guidance on how the reader can replicate this success themselves.

There are few people with access to the inner chambers of the hedge fund industry, and as a result it remains practically uncharted financial territory. Alpha Masters changes all that, shedding light on star fund managers and how exactly they consistently outperform the market. The book:

• Contains easy-to-follow chapters that are broken down by strategy—Long/Short, Event Arbitrage, Value, Macro, Distressed, Quantitative, Commodities, Activist, pure Short, Fund of Funds.
• Includes insights from the biggest names in the trading game, including Ray Dalio, Marc Lasry, Jim Chanos, Sonia Gardner, Pierre Lagrange, and Tim Wong.
• Features contributions from industry icon Mohamed El-Erian

Many of the subjects profiled in this groundbreaking new book have never spoken so candidly about their field, providing extremely provocative, newsworthy analysis of today's investing landscape.

Product Details

ISBN-13:	9781118167571
Publisher:	Wiley
Publication date:	05/03/2012
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	272
Sales rank:	559,426
File size:	5 MB

About the Author

Maneet Ahuja (New York, NY) is a producer on "Squawk Box," specializing in hedge funds and alternative investments. She was awarded CNBC's prestigious Enterprise Award in 2009 for her groundbreaking coverage of the ultra-secretive hedge fund industry for the network. Prior to joining CNBC in 2008, she was a part of the Wall Street Journal's Money & Investing team. She began her career on Wall Street in 2002 at age 17 in Citigroup's Corporate & Investment Banking division as a credit risk analyst.'In 2010, she was nominated for Crain's NY Business Forty Under 40 Rising Stars.

Read an Excerpt

Click to read or download

Table of Contents

Foreword: The Less Mysterious World of Hedge Funds by Mohamed A. El-Erian, CEO and Co-CIO of PIMCO ix

Preface xv

Disclaimer xxiii

Chapter 1: The Global Macro Maven: Ray Dalio, Bridgewater Associates 1

Chapter 2: Man versus Machine: Pierre Lagrange and Tim Wong, Man Group/AHL 25

Chapter 3: The Risk Arbitrageur: John Paulson, Paulson & Co. 39

Chapter 4: Distressed Debt’s Value Seekers: Marc Lasry and Sonia Gardner, Avenue Capital Group 75

Chapter 5: The Fearless First Mover: David Tepper, Appaloosa Management 93

Chapter 6: The Activist Answer: William A. Ackman, Pershing Square Capital Management 115

Chapter 7: The Poison Pen: Daniel Loeb, Third Point 155

Chapter 8: The Cynical Sleuth: James Chanos, Kynikos Associates LP 173

Chapter 9: The Derivatives Pioneer: Boaz Weinstein, Saba Capital Management 193

Afterword:  Myron S. Scholes, 1997 Nobel Laureate in Economics and Co-Author of the Black-Scholes Option Pricing Model 203

Appendix 211

References 225

Acknowledgments 237

About the Author 240

Index 241

What People are Saying About This

From the Publisher

“This is one of the very few books I know of that crawls inside the minds of today’s most brilliant investors to get the play-by-play of their best (and sometimes worst) investments. You feel as though you are sitting across from the likes of John Paulson and David Tepper as they share their most sought-after techniques and analysis. This book will pay for itself and then some for those who are smart enough to pick it up.”

—Nouriel Roubini, Cofounder and Chairman, Roubini Global Economics, Professor of Economics, NYU Stern School of Business

“Maneet Ahuja knows well the stars of the hedge fund universe. She has written a really very interesting book that provides insights into the industry, its rapid evolution, and its adaptability to a constantly shifting investment landscape. But, most of all, she introduces us to its fascinating leaders, in depth. From their backgrounds, values, and modes of thought, she gives us insight into what it takes to be successful in this most demanding profession.”

—Michael Spence, 2001 Nobel Laureate in Economics, former Dean of Stanford Business School

“Hedge funds carry a range of connotations for investors, both good and bad. Maneet’s demystification of this increasingly important sector of the financial world provides a valuable service for investors, as they look for alternatives to the financial institutions—and investing tenets—that failed them during the financial crisis.”

—Sallie Krawcheck, former CEO of Merrill Lynch Wealth Management and U.S. Trust

“No one has the type of access to this elite class of hedge fund managers as Maneet Ahuja does. The Alpha Masters provides the type of in-depth insight and advice that only comes from countless conversations and time spent one-on-one with these managers. The Alpha Masters is bound to be a classic.”

—Leon G. Cooperman, Chairman and CEO, Omega Advisors, Inc.

“The Alpha Masters has captured the background, the ideas, and the money-making cutting-edge strategy of today’s drivers of financial thought, analysis, and action. It is a great read for those who track the capital market and the tug-of-war between creativity, ideas, and capital market stress.”

—Mario J. Gabelli, Chief Investment Officer, GAMCO Investors, Inc.

“The great cultural divide in journalism has always been between access and accountability reporting. But, in the end, it’s really just a division of labor; readers need both. Ahuja works the access side of the street, and gets people to talk as few others can. The result is a surprisingly absorbing book about people who you can’t help but be curious about.”

—Dean Starkman, Pulitzer Prize–winning journalist and Editor of the Columbia Journalism Review ’s “The Audit”

“Maneet presents clear and thoughtful studies of some of the most successful investors of recent years. The Alpha Masters is highly recommended as an excellent guide to what has worked best recently in the rapidly changing and sometimes secretive world of hedge funds.”

—Jim McCaughan, Chief Executive, Principal Global Investors

“With great insight and clarity, Maneet Ahuja distills the essence of what makes hedge fund managers successful.  The leading – and legendary – figures in the business provide her with their recipes for the “secret sauce” that puts them ahead of the rest.  This book is a must read for anyone considering investing in, working in, or just plain interested in the hedge fund industry.”   

—Randall S. Kroszner, Norman R. Bobins Professor of Economics, Booth School of Business, University of Chicago and former Governor of the Federal Reserve

Editorial Reviews

"Using savvy and psychological understanding she fully grasps the nature behind the secretive trade, and gives the reader guidance to replicate success." (European CEO, 1st August 2012)

"... this is a well written book about some of the more colourful figures in the world of high-stakes investing. Anyone looking for a decent holiday read could do a lot worse." (Money Week, June 2012)

"There is not a dull moment, and one may even come out a much wiser investor by the end of the book."(eVestment, June 2012)

From the Publisher