The Fundamentals of Hedge Fund Management PDF 

The Fundamentals of Hedge Fund Management PDF

The Fundamentals of Hedge Fund Management PDF (2nd edition) Updated edition of the book that gives investors, advisors, and managers the tools they need to launch and maintain a hedge fund in today’s economy.

Category: Hedge Fund

Author: Daniel A. Strachman 

Language: English

Free Download link: At the end of the post


The hedge fund industry has gone through dramatic changes in recent years. Investors of all types continue to want to place their assets into these investment vehicles even in the wake of the credit crisis, massive frauds, and insider trading scandals. Once the forbidden fruit of Wall Street, hedge funds are now considered “must have” investments in any diversified portfolio. Now in its second edition, The Fundamentals of Hedge Fund Management is revised and updated to address how the credit crisis, legislation, fraud, technology, investor demand, global markets, and the economic landscape have affected the industry.

Providing readers with a detailed and in-depth analysis of the world of hedge funds, the people working in it, and a look at where it’s headed, the book is a timely and indispensable reference and research tool for helping professional money managers, traders, and others to launch and grow successful hedge fund businesses.

  • Addresses how the credit crisis and its fallout has affected the hedge fund industry and what this means for the future
  • Provides the essential information needed to launch and maintain a successful hedge fund in the new global economy
  • Walks the reader through running a hedge fund, helping you to gain success over years, not just months

An essential resource for anyone looking to invest in these much-discussed investment products, The Fundamentals of Hedge Fund Management, Second Edition is now fully revised and updated.



Over the past five years since the first edition of this book came out, the hedge fund industry has grown enormously. Hedge funds, which were once thought of as a tool of the rich and privileged, are commonplace in investment portfolios around the world. No matter what you read, see, or hear in the popular press, the hedge fund industry is here to stay. Even in the wake of the collapse of many large funds, the industry is stronger than ever and has become a force to be reckoned with here and abroad.

Now is a wonderful time to be entering the hedge fund industry, for three reasons. First, the industry is primed for growth; second, the markets are volatile; and third, hedge funds have come into their own, nearly on someone else’s nickel. This means a lot of the work you previously would have had to do to build your business has been done for you, and the road to hedge fund riches is going to be smoother than it was, say, three years ago.

However, that being said, building a successful business is going to take a lot of hard work, there are going to be disappointing times, and it is going to be frustrating more often than not. Therefore, my advice is as follows: Be prepared for the worst, expect the best, and be satisfied on some level with your success.

I believe that the industry is primed for growth, and with this growth will be many questions. The intention of this book is to answer some, if not all, of the questions you or your colleagues may have and provide you with a foundation for your business and tools to enable you to find the answers.

Over the past 12 years, I have had the unique experience of working around the world with people who are creating, building, developing, and marketing hedge funds. Some are starting out and have less than $1 million in assets under management; some are well-heeled firms with billions in assets under management. Others fall somewhere in between. Though their situations are different and in some sense unique to them, they all have the same questions, they all need basically the same answers, and they don’t have a place to turn to for advice. My job is to give them that advice, whether they want to hear it or not. My job is to tell it like it is and to help them get to where they need to be with their business. During this time, I have worked with clients around the globe; it has been quite a wild ride. The key for me has been to solve problems for those in the hedge business who fly without a net because they aren’t part of some investment management behemoth.

This book provides you with some of what you need to be successful. It provides you with the tools you need to make good decisions, the tools you need to create good plans, the tools you need to set out a marketing strategy to help you raise assets, and the tools you need to create an infrastructure that will allow you to support your business.

Your goal in reading this book is to learn as much as you can about how to operate the business side of a hedge fund. This book is not about money management strategies. This book is not about buying low and selling high.

It is about the infrastructure, the business side, of the hedge fund industry, and as you read the following pages, you will learn the fundamentals you need to run a successful business.

This book will not solve all problems or provide you with everything you need to succeed; instead, it will give you the fundamentals. One thing you should look for as you go out on your own is a mentor. To succeed, you need good, solid advice givers, and you need to be willing to take advice and look for it. Don’t be embarrassed or too proud to ask for help. It is okay to have questions; the key is finding answers.

This book should be viewed as a great resource tool. It should be something you use repeatedly to help you understand, deal with, and operate your business more efficiently and successfully. I hope you will get as much joy from reading and rereading it as I have had from writing it. As I say more than once throughout these pages, if you have any questions about anything that you read in this book, or if you have issues you want to discuss, you can always send me an e-mail at

Thanks for purchasing this book. I hope you enjoy

Table of contents- The Fundamentals of Hedge Fund Management PDF 

Preface xi

Acknowledgments xiii

CHAPTER 1 The Hedge Fund Industry 1

CHAPTER 2 The Service Providers 23

CHAPTER 3 Hedge Fund Structures 41

CHAPTER 4 Hedge Fund Accounting 59

CHAPTER 5 ERISA, UBTI, and Offshore Funds 77

CHAPTER 6 Marketing and Capital Raising 91

CHAPTER 7 Why the Back Office Matters 113

CHAPTER 8 The Launch 127

CHAPTER 9 Perception versus Reality 141

APPENDIX A Hedge Fund Litigation 153

APPENDIX B Examples of Hedge Fund Structures 189

Resource Guide 199

Notes 205

Glossary 209

Bibliography 213

About the Author 217

Index 219

About the author

Daniel A. Strachman  is an expert in all aspects of investment management with more than sixteen years of Wall Street experience. He is nationally recognized as a strategist, futurist, and commentator on Wall Street, the economy, and investment strategy. Daniel specializes in providing strategic advice and counsel to companies that want to expand and prosper in both good and bad economic times. He has worked in product development, marketing, and sales focused in and around the money management industry. He is the author of several other books, including The Long and Short of Hedge Funds, Getting Started in Hedge Funds, Julian Robertson, and Essential Stock Picking Strategies, all published by Wiley.

Daniel Strachman has been working on Wall Street for more than twenty years in various capacities, including institutional brokerage, money management, and mutual fund and hedge fund product development and marketing. He is an expert in all aspects of retail and institutional distribution for both traditional and alternative investment products and services. Daniel is also fully versed in strategic planning for both investment firms and firms that provide services to the investment community. He has provided consulting services to companies around the world to help make their organizations expand and prosper in both good and bad economic times.

Daniel is the author of nine books on investment strategy, the hedge fund industry, and investment managers. His articles have appeared in The Financial Times, The Boston Globe, Interview Magazine, The New York Post and American Banker. He is often quoted and appears in the news media and is formally an adjunct professor at Rutgers University Business Schoo where he taught graduate and under graduate courses in corporate finance and investment management. Mr. Strachman graduated from Clark University with a Bachelor of Arts.

Please free free to contact Dan at

Download ebook The Fundamentals of Hedge Fund Management PDF (second edition)



0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments