In the relatively limited universe of hedge fund books, you can still find some resources. Whether you prefer a straightforward textbook approach, case studies or personal stories of investors and fund managers, our comprehensive list will help you navigate all your must-read options. Here are Benzinga's picks for the best hedge fund books.
Quick Look at the Best Hedge Fund Books:
- Hedge Funds for Dummies by Ann C. Logue
- Hedge Funds: Structure, Strategies, and Performance by H. Kent Baker and Greg Filbeck
- The Hedge Fund Book: A Training Manual for Professionals and Capital-Raising Executives by Richard C. Wilson
- More Money Than God: Hedge Funds and the Making of a New Elite by Sebastian Mallaby
- Black Edge: Insider Information, Big Money, and The Quest To Bring Down the Most Wanted Man on Wall Street by Sheelah Kolhatkar
- Hedgehogging by Bartin Biggs
- Bite the Ass Off a Bear: Getting In and Standing Out on a Hedge Fund Trading Floor by Garth Friesen
The Best Hedge Fund Books for Novice Investors
If you’re an accredited investor but aren’t super-familiar with hedge funds, there are several good books to get your fill of the basics. Look for books brimming with layman’s terms to explain how funds work, the risks involved and some basic hedge fund history.
1. Hedge Funds for Dummies by Ann C. Logue
Condescending title aside, Hedge Funds for Dummies offers an easy-to-understand overview of different types of funds, pros, and cons of choosing hedge funds, common mistakes and how to set up your hedge fund strategy. It also walks you through how to find a broker you can trust, what kind of fees you can expect to pay, paperwork you will encounter, as well as how to withdraw funds and handle taxes.
Logue’s book is accessible and easily digestible and includes sample portfolios to show you the ropes as you wade into new investing territory. It identifies the basic building blocks of hedge fund investing for novice investors and explains:
- How to determine if a hedge fund is right for your portfolio,
- How to calculate investment risk and return,
- How to develop a hedge fund strategy based on your investing goals, as well as
- How to evaluate fund performance and management.
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2. Hedge Funds: Structure, Strategies, and Performance by H. Kent Baker and Greg Filbeck
Hedge Funds: Structure, Strategies, and Performance dives into theoretical as well as the practical perspectives on hedge funds and explores their structure, background and ways to monitor their performance. If you think all hedge funds are over-leveraged, high-risk ventures based in illiquid assets and only profitable for hedge fund managers, this book dispels that myth and identifies the diverse investing strategies used by hedge funds.
This overview focuses on both theory and practical application as it guides you like a textbook. You may want to take some notes to help you digest the material, and in doing so, you might become a quasi-expert by the end of Hedge Funds: Structure, Strategies, and Performance.
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3. The Hedge Fund Book: A Training Manual for Professionals and Capital-Raising Executives by Richard C. Wilson
What better way to learn about an industry than by reading the handbook for industry insiders? The Hedge Fund Book: A Training Manual for Professionals and Capital-Raising Executives is required reading for hedge fund managers, as it explains how funds operate, provides case studies, analyzes investment strategies and offers best practices.
It assesses each phase of the lifecycle of funds and provides real-world examples.
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The Best Hedge Fund Books for Case Studies
If you’re looking for a different approach to learning about hedge funds, a journalistic option will tell a compelling story and educate you on regulatory changes and lessons learned. Here are several books that detail the meteoric rise of some fund managers, as well as some valuable cautionary tales.
1. More Money Than God: Hedge Funds and the Making of a New Elite by Sebastian Mallaby
Economic history isn’t usually a riveting read, but More Money Than God: Hedge Funds and the Making of a New Elite keeps your attention as it details the stories of larger-than-life financiers and the history of hedge funds, their growth, and evolution from the 1960s through the 2008 financial crisis. The book dives deep into how hedge funds outsmart the market to make impressive gains.
A smooth read meticulously researched and footnoted, this book is a great way to learn by peeking through a window into the industry without having to start at the beginning.
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2. Black Edge: Insider Information, Big Money, and The Quest To Bring Down the Most Wanted Man on Wall Street by Sheelah Kolhatkar
Black Edge: Insider Information, Big Money, and The Quest To Bring Down the Most Wanted Man on Wall Street is a riveting legal thriller detailing the rise and downfall of Steven Cohen’s SAC Capital hedge fund, ultimately the target of a seven-year government investigation into an insider trading conspiracy. There is nothing like a book on the complex workings and wrongdoings of a massive criminal scheme to teach a valuable lesson about regulatory requirements, investor understanding, and greed.
This New York Times bestseller exposes the reader to hedge funds’ high risk, high reward pedestal. The book is more gripping novel than boring case study and keeps you engaged and learning.
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Best Hedge Fund Books for Insider Stories
If you’re looking for success stories and strategies of successful hedge fund managers, peruse these autobiographies for the true insider experience. In addition to investing strategy and experience, you gain individual insight into the world of hedge fund trading and its highs and lows. These books detail more investing strategy and business acumen than hedge fund basics.
1. Hedgehogging by Bartin Biggs
The founder of wildly successful Traxis Partners details his experience and success in the cutthroat investment world, lessons learned, common mistakes by investors and provides his reflection on investment strategies. Hedgehogging is a behind-the-scenes look into the life of a 30-year Morgan Stanley veteran analyst-turned-hedge fund founder and manager is readable and relatable.
You’ll learn successful trading strategies as well as an inside view of how fund managers view their clients, funds and their risk and reward drivers. It buries lessons inside interesting anecdotes. It’s an easy read if you’re interested in looking through your fund manager’s eyes.
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2. Bite the Ass Off a Bear: Getting In and Standing Out on a Hedge Fund Trading Floor by Garth Friesen
Written primarily as a career primer, Bite the Ass Off a Bear: Getting In and Standing Out on a Hedge Fund Trading Floor details life as a hedge fund manager and the inside perspective on trading, strategies, and tips for industry success. It offers interesting observations from the person tasked with managing your money.
The book argues that greedy, power-hungry, self-seeking fund traders are unsuccessful and that true success in the industry comes from collaboration and team-building. The author writes for aspiring fund managers and traders and encourages interpersonal skills and dismisses the cutthroat industry-standard attitude.
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Final Thoughts
Whether you’re a novice investor or looking for some personal experience and advice from successful fund managers, there is a book out there for you to expand your knowledge base on hedge funds and allow you to close books confident in your newfound understanding.
Where can I find hedge fund books for beginners?
You can find hedge fund books for beginners in the list above.
Where can I read about hedge fund case studies?
You can read about hedge fund cases studies by reading book that document the case studies so investors can learn from them.
Why should I read books about hedge funds?
If you want to increase your chances of success and reduce your risk, it pays to read hedge fund books to expand your knowledge and learn from others in the market.