How Can You Learn About Offshore Hedge Funds?

Summary: If you want to invest in offshore hedge funds, there is a potentially very steep learning curve - unless you believe that ignorance is best... This page suggests some resources that can help you understand hedge funds much better.

Books: The first book we can recommend is by Barton Biggs, a man who is something of a legend in the world of investment. His first book, Hedgehogging offers some excellent insight into the ways in which funds work, how their managers think, what motivates them and why they keep going.

His description of 'units' of wealth is something else and will almost certainly amaze the casual reader.

Our second recommendation is by Scott Patterson and is called The Quants. It is a very good description of how computer based trading using highly complex mathematical algorithms - known as algorithmic trading - developed, when, how and by whom. It is quite a story of risk and financial rewards and although it will help the newcomer to understand the broad concepts, it is very readable and will not be too confusing for anyone.

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Another we like is by Timothy Sykes and is called An American Hedge Fund. We actually have this as an audio book on an iPhone, but that does not stop us from recommending it. It is an interesting account of how the author traded on the stock market, made big profits and then formed a hedge fund. Very revealing....

Another from Barton Biggs is A Hedge Fund Tale of Reach and Grasp. This is actually a novel, but there can be few with greater experience of hedge funds over the past twenty years or so, and as such, the descriptions of what it takes to succeed and the rewards available must be taken very seriously. Since this is fiction, there must be some elements to be taken more lightly than others, but this will be a good primer for many people.

The last on this list that your author has read is by Sebastian Mallaby and called More Money Than God: Hedge Funds And The Making Of A New Elite. This was an excellent read with some great descriptions of how politicians have been involved in the hedge fund world - some accidentally and some onk purpose - and how they have mostly ended up strengthening the position of the funds.

However, I would make one criticism of this book, and it is that the world of hedge funds is very international, there are a great many that operate offshore in various ways. Yet, this book only seems to describe American funds and American fund managers. This does seem to be something of a glaring oversight to me. But, it is still an excellent book and highly recommended.

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Websites: There are two websites that we like that focus solely on the hedge fund business.

The first is HedgeWorld and is run by Reuters which is a guarantee of quality. The site has lots of news, stories and some gossip about this very small world.

Secondly, we like HedgeCo.Net which is built as a database service of hedge funds, but to help their marketing (one presumes) and positioning, they publish lots of information and latest news.

It might be obvious from that list that we started with the easier to access - things that the general public might find interesting and progressed to the more professional offerings. We hope that there is a resource to suit your needs in the list above.

If you would like to read more, please follow these links:

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