just a history, More Money Than God is a window to tomorrow's financial system.
First, the book is very well researched. (the author logged 300 hours of inter-.
afterhours
Hedge Funds Stand the Test of Time
More Money Than God: Hedge Funds and the Making of a New Elite by: Sebastian Mallaby Publisher: Bloomsbury Publishing Pages: 296 Price: Rs. 899
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ebastian Mallaby’s More Money Than God: Hedge Funds and the Making of a New Elite tells the inside story of hedge funds, and is touted as the first authoritative history of hedge funds from their rebellious origins in 1949 to their role in the financial crisis of 2007- 2009, and highlights how they define the future of finance. The author, a former correspondent for The Economist, is clear on where he stands on the issue of hedge funds’ regulation. He is against it. With the possible exception of a few systemically significant funds, he thinks regulation will bring more harm than good, and that there are more pressing concerns over fixing the global financial system. Hedge
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funds as Mallaby shows, are definitely the place to be for smart people bent on making serious money, or for those with the ambition to rewrite the rules of financial theory. Hedge funds are defined by four characteristics: they stay under the radar screen of regulatory authorities; they charge a performance fee; they are partially isolated from general market swings; and they use leverage to take short and long positions on the markets. Most importantly, in a financial system riddled with conflicts of interests and skewed incentives, hedge funds get their incentives right. As a result, according to Mallaby, they do not wage any systemic threat to the financial system, and they may even provide part of the solution to our postcrisis predicament Drawing on insights from mathematics, economics, and psychology, hedge funds have cracked the market’s mysteries and
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edge funds as Mallaby shows, have cracked the market’s mysteries and gone on to earn fortunes. Their innovations have transformed the world gone on to earn fortunes. Their innovations have transformed the world, spawning new markets in exotic financial instruments and rewriting the rules of capitalism. And the hedge fund industry has survived the test of 2007–2009 far better than its rivals. To a surprising and unrecognised degree, according to Mallaby, the future of finance lies in the history of hedge funds. More than
just a history, More Money Than God is a window to tomorrow’s financial system First, the book is very well researched (the author logged 300 hours of interviews!) and is well written. It is an easy read and gives a good general overview of the history of hedge funds as well as introducing the reader to various legends of the industry (including of course George Soros, and the author shows the reality of a very dark side of Soros as well). But essentially, the book is an absolute must read for every trader and money manager, and for everyone working at a hedge fund. Not only is the book interesting as a solid general reference for an overview of the evolution of hedge funds, but also for the various trading techniques. Some traders will get additional confirmation that they’re on the right track with their strategies, and others will get good tips and pointers here and there and will most likely be able to improve their strategies, fine tune them, and become even more successful in their approach. The author has a good categorical and chronological approach as well as a rare but excellent, easy recap treatment with every feature so that the reader understands the whole picture and understands the rich substance of the context quite easily. There’s also an extensive and helpful appendix and index, making it very beneficial to every reader interested in the subject. You can even say that the book is essential to those who are interested in this field. Mallaby grapples with the variety of thought behind the success of hedge funds in giving us a workmanlike insight. This attempt to describe how the hedge funds actually operate – as far as he is able (and he tells us when he cannot) – makes this a valuable book indeed. n
