Hedge Funds: Quantitative Insights (The Wiley Finance Series) By Francois-Serge Lhabitant

The author provides a primer on the quantitative nature of hedge funds; providing a quantitative analytical approach to building HF portfolios and how these tools can be applied to Hedge fund investing. Divided into three parts, the books covers the measurement of risk-adjusted returns for hedge funds, not on determining whether they outperform or under-perform traditional markets but rather on understanding the meaning of performance statistics use by managers and quantitative analysts. Lhabitant covers the various styles such as equity long/short, event-driven, relative value arbitrage, multi-strategy, and fund of funds. He gives the reader and over view of the current state of the industry which is good for anyone at any time as he explains the size of the market, institutional investors, the role of hedge funds in an investor's portfolio, and how the hedge fund industry has changed over the last few decades. Then he moves onto risk and understanding how to measure risk, risk-adjusted performance measures, indices, benchmarks, regression analysis, asset pricing models and various styles. In the final section he covers allocating capital, touches on value at risk (VAR) and strategic asset allocation.