CiNii Books - A guide to starting your hedge fund

Successful hedge fund investing begins with well-informed strategy A Guide to Starting Your Hedge Fund is a practical, definitive "how-to" guide, designed to help managers design and launch their own funds, and to help investors select and diligence new funds. The first book to examine the practical aspects of setting up and operating funds with a focus on energy commodity markets, this book scrutinises the due diligence process and comprehensively reviews the opportunities and risks of all energy commodity markets as hedge fund investments. Extensive planning and strategy advice prove invaluable to prospective fund managers and investors alike, and detailed discussion of the markets' constraints help inform procedural decisions. Readers gain insight into practical matters including legal and commercial structures, due diligence, fund raising, operations, and more, allowing them to construct a concrete investment plan before ever touching a penny. Asset managers are looking to energy commodities to provide attractive uncorrelated - if volatile - returns. These high returns, however, are accompanied by high risk. Few investors have experience evaluating these investment opportunities, and few prospective fund managers understand the market fundamentals and their associated risks. This book provides the answers sorely lacking in hedge fund literature, giving investors and fund managers the background they need to make smarter decisions. Understand the markets' structures, opportunities, and risks Develop a comprehensive, well-informed investment strategy Conduct thorough due diligence with a detailed plan Examine the practical aspects of fund raising, legal and tax structure, and more Oil has long been traded by hedge funds, but electricity, the fuels that generate electricity, and the environmental products like emissions allowances and weather derivatives have become the new "hot" investment strategies. These high returns come with higher risk, but A Guide to Starting Your Hedge Fund ensures participants have essential information at their disposal.

Table of Contents

Acknowledgements ix Part I Why This Book? 1 Chapter 1 Introduction 3 Why This Book? 3 The Big Picture and Energy Commodities 4 Case Study: Amaranth Advisors 5 Layout 6 The Beginning 7 Bibliography 7 Part II the Basics 9 Chapter 2 What Is a Hedge Fund? 11 I Already Know What a Hedge Fund Is 11 A Little Bit of History 12 So What Is a Hedge Fund? 13 Hedge Funds (Un)Defined 16 The Growth of the Hedge Fund Industry 18 Hedge Fund + Commodities = Commodities Corporation 19 Whither Energy and Commodity Hedge Funds? 20 Moving Forward 20 Bibliography 21 Chapter 3 What Are Energy Commodities? 23 Introduction 23 What Are Energy Commodities? 23 The Regionality of Electricity 25 Why Are Energy Commodities Attractive for Investors? 27 A Complex, Solvable Problem 30 Drivers of Complexity 31 Conditions for Solvability 36 Principal Sources of Opportunity and Risk 39 Bibliography 46 Chapter 4 Trading and Investing in Energy Commodities 47 Bottom-up and Top-down 48 Trading + Managing a Business = Successful Hedge Fund 49 The Edge? 50 Trading Energy Commodities 52 Basic Financial Knowledge for Commodities 55 Conclusion 56 Bibliography 59 Part III Starting the Journey 61 Chapter 5 The Business Plan: Implications and Applications 63 Introduction 63 Objectives and Uses of a Hedge Fund Business Plan 64 Conclusion 71 Bibliography 72 Chapter 6 Laws, Contracts, and Lawyers 73 Don't Kill Your Lawyer 73 Legal Basics for Funds 74 Master-Feeder Fund Structures 77 Side-Pocket Structures 81 The Firm 84 The Investment Advisory Agreement 86 Contents vii Attributes and Variations of the Investment Management Enterprise 87 Structural Design Decisions 88 Case Study: Complex Tax Structuring 98 Be Nice To Your Lawyer 103 Bibliography 104 Chapter 7 Service Providers 105 Introduction 105 Long-Term Relationship: Service Providers and Marriage 106 Service Providers: Who and Where? 107 Negotiate, Negotiate, Negotiate 108 Service? 110 How to Choose? 112 Final Thoughts 113 Bibliography 113 Part IV Running the Business 115 Chapter 8 Fundraising 117 Strategic Investor Portfolio Design 118 Start-up Lifecycle Analysis and Investor Portfolio Development 127 Investor Acquisition - Marketing 130 Tools for Marketing and Key Marketing Documents 140 Marketing Documentation 143 Investor Maintenance - Investor Relations 152 Chapter 9 Operations and Infrastructure 155 Introduction 155 Infrastructure and Technology 158 Bibliography 160 Part V Final Thoughts 161 Chapter 10 Investing in Energy Commodity Hedge Funds 163 Asset Allocation: Portfolio Building Basics 163 Asset Allocation: Understanding Different Strategies 167 Checklist for Investing in Energy Commodity Hedge Funds 170 Bibliography 171 Chapter 11 Quo Vadis 173 Bibliography 179 Appendix A Sample Business Plan Outline 181 Appendix B Outline of a Confidential Explanatory Memorandum: Sample Offshore Feeder Ltd 183 Appendix C Sample Due Diligence Questionnaire Outline 189 Index 195

by "Nielsen BookData"

A guide to starting your hedge fund

Author(s)

Bibliographic Information

Available at 1 libraries

Search this Book/Journal

Note

Description and Table of Contents

Details

Export