The fall and rise of a trillion-dollar industry     Just three years ago, hedge funds were at the    top of the investment world. Years of unparalleled    growth had pushed assets to nearly    $3 trillion. Leverage was used so aggressively    that total long and short investments approached    an astonishing $10 trillion. Thousands    of new funds had sprouted in every corner of    the market, and managers, enjoying an almost    unimaginable pool of fees, were dubbed the    new “masters of the universe.”    Then came 2008.The industry suffered its    worst performance ever, losing $600 billion    or roughly 20% in a single year. Multibilliondollar    hedge funds collapsed overnight, epic    frauds were revealed, and assets plummeted    as spooked investors scrambled to get their    money back.    The near collapse of the industry is one of the    most dramatic stories of the global economic    meltdown. It’s also among the most instructive—    because hedge funds are still alive and,    if managed wisely, will emerge stronger than    ever in the coming years.    In  Hedge Funds Humbled , industry insider    Trevor Ganshaw provides a detailed primer    of the industry and explains how the people    who earned more than $100 billion in fees    during their short but happy heyday planted    the seeds of their own destruction. He paints    a vivid picture of how the industry leaders’    major mistakes destroyed hundreds of billions    of investor capital; Ganshaw calls them the    “seven deadly sins” of the hedge fund industry:    Out-of-control leverage    Inadequate risk management    Flawed fee structures    Overcrowded strategies    The Peter Principle of    too much capital    Capital instability    Fraud, enabled by lax controls    Ganshaw examines the future of the industry    and shows investors what to look for and what    to avoid. There’s still money to be made in    hedge funds and, in his estimation, the industry    is poised for a comeback. “As all good    hedge fund managers know, greed is good,”    he writes. “Humility, it seems, may now be an    essential part of keeping it that way.”    More dramatic than fiction,  Hedge Funds    Humbled  is a timely work that provides a critical    look at an industry gone bad—and an optimistic    look at its future.

Hedge Funds, Humbled: The 7 Mistakes That Brought Hedge Funds to Their Knees and How They Will Rise Again PDF

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