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| Foreword | |
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| Introduction | |
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| Hedge Fund Overview | |
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| History Revisited | |
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| The very early years: The 1930s | |
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| The formative years (1949-1968) | |
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| The dark ages (1969-1974) | |
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| The renaissance (1975-1997) | |
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| The Asian and Russian crises (1997-1998) | |
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| The equity bubble years | |
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| Hedge funds today | |
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| The key characteristics of modern hedge funds | |
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| The future | |
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| Legal Environment | |
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| The situation in the US | |
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| The Securities Act (1933) | |
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| Securities Exchange Act (1934) | |
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| Investment Company Act | |
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| Investment Advisers Act (1940) | |
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| Blue-sky laws | |
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| National Securities Markets Improvement Act (1996) | |
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| Employee Retirement Income Security Act (1974) | |
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| Other regulations | |
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| The Commodity Futures Trading Commission | |
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| The situation in Europe | |
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| The UCITS directives and mutual fund regulation | |
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| The case of European hedge funds | |
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| Germany | |
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| France | |
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| Italy | |
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| Switzerland | |
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| Ireland | |
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| Spain | |
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| The situation in Asia | |
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| Internet and the global village | |
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| Operational and Organizational Structures | |
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| Legal structures for stand-alone funds | |
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| In the United States ("onshore") | |
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| Outside the United States ("offshore") | |
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| A network of service providers | |
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| The sponsor and the investors | |
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| The board of directors | |
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| The investment adviser | |
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| The investment manager or management company | |
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| The brokers | |
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| The fund administrator | |
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| The custodian/trustee | |
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| The legal counsel(s) | |
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| The auditors | |
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| The registrar and transfer agent | |
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| The distributors | |
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| The listing sponsor | |
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| Specific investment structures | |
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| Mirror funds | |
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| Master/feeder structures | |
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| Managed accounts | |
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| Umbrella funds | |
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| Multi-class/multi-series funds | |
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| Side pockets | |
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| Structured Products | |
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| Disclosure and documents | |
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| Private placement memorandum (PPM) | |
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| Memorandum and articles of association | |
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| ADV form | |
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| Limited partnership agreements | |
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| Side letters | |
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| Understanding the Tools Used by Hedge Funds | |
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| Buying and selling using a cash account | |
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| Buying on margin | |
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| Mechanics | |
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| Buying on margin: an example | |
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| Short selling and securities lending | |
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| Mechanics of short selling | |
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| A detailed example | |
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| Restrictions on short selling | |
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| Potential benefits of short selling | |
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| Alternatives to securities lending: repos and buys/sell backs | |
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| Derivatives | |
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| Terminology | |
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| Basic derivatives contracts | |
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| Credit derivatives | |
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| Benefits and uses of derivatives | |
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| Leverage | |
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| Hedge Fund Strategies and Trade Examples | |
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| Introduction | |
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| Long/Short Equity Strategies | |
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| The mechanics of long/short equity investing | |
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| A single position | |
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| Sources of return and feasible portfolios | |
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| Disadvantages of long/short equity investing | |
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| Investment approaches | |
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| The valuation-based approach | |
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| Sector specialist hedge funds | |
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| Quantitative approaches | |
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| Equity non-hedge hedge funds | |
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| Activist strategies | |
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| Historical performance | |
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| Dedicated Short | |
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| The pros and cons of dedicated short selling | |
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| Typical target companies and reactions | |
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| Historical performance | |
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| Equity Market Neutral | |
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| Definitions of market neutrality | |
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| Dollar neutrality | |
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| Beta neutrality | |
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| Sector neutrality | |
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| Factor neutrality | |
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| A double alpha strategy | |
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| Examples of equity market neutral strategies and trades | |
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| Pairs trading | |
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| Statistical arbitrage | |
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| Very-high-frequency trading | |
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| Other strategies | |
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| Historical performance | |
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| Distressed Securities | |
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| Distressed securities markets | |
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| The origins: railways | |
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| From high yield to distressed securities | |
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| The distressed securities market today | |
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| Distressed securities investing | |
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| Why distressed securities? | |
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| Legal framework | |
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| Valuation | |
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| Active versus passive | |
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| Risks | |
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| Examples of distressed trades | |
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| Kmart | |
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| Failed leveraged buyouts | |
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| Direct lending | |
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| The case of airlines | |
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| Histo | |