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The Hedge Fund Edge: Maximum Profit/Minimum Risk Global Trend Trading Strategies (Wiley Trading)
 
 
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The Hedge Fund Edge: Maximum Profit/Minimum Risk Global Trend Trading Strategies (Wiley Trading) [Hardcover]

Mark Boucher (Author)
4.1 out of 5 stars  See all reviews (19 customer reviews)

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Book Description

0471185388 978-0471185383 October 30, 1998 1
Achieve higher returns with lower risk and take your profits globally.

A leading hedge fund trader offers a solid and profitable trading approach to the world markets.

"This is the best stock market book that I have read in a long time. Boucher lays it out clearly, concisely, and in a most interesting manner. A 'must read' for anyone who invests in the equities market." -Dan Sullivan Editor, The Chartist

"A leading practitioner offers rich theoretical insights and sound practical advice based on years of successful trading. Mark Boucher is that rare investment analyst who knows what really works in trading and can communicate it with authority and grace." -Nelson Freeburg Editor and Publisher, Formula Research, Inc.

The Hedge Fund Edge is an indispensable guide for any investor or trader who wants to consistently profit from the markets without having to undergo huge risks. Mark Boucher, hedge fund manager and well-known speaker on trading, provides readers with a solid methodology for achieving market-beating, long-run returns with risk that is substantially below the long-run risk of U.S. and global equities.

Boucher first looks at the limitations of traditional stock and bond investing, and then explains how to determine the safest and most profitable periods for investing in stocks in any country. He explains this strategy both conceptually and with an objective model that has been used to manage money successfully since the 1950s. He shows how to allocate funds among global equities at any given time while following safe, reliable, and profitable trends. The book also provides a thorough discussion of the Austrian Liquidity Cycle, an original combination of Austrian Economics, Economic Alchemy, and Liquidity Cycle Theory. Boucher explains how to use this theory to understand the major moves behind the markets and determine the most profitable market in which to invest.

The Hedge Fund Edge provides critical valuation and technical models as well as essential information on stock selection techniques to help readers identify which markets and stocks are both lower-risk and higher-performing. Boucher also describes, in detail, the impact of governmental policies on the markets and the connection between macroeconomic performance and investment performance. Also included are essential timing models for determining when to invest in gold, bonds, commodities, and other asset classes, as well as methods for allocating a portfolio with the goal of investing in the very best trends at any one point in time across all asset classes. The book emphasizes the power of diversification among asset classes, such as arbitrage funds, global hedge funds, different types of futures funds, distressed bonds, and other market-uncorrelated investments. Boucher explains how this diversification can be used to build a bullet-proof and highly profitable portfolio that returns consistently high profits with much lower than market risk. Boucher provides examples from his own real-time hedge fund trading experience and offers his performance as proof of what can be achieved via these techniques.

The Hedge Fund Edge melds market timing, vehicle selection, risk management techniques, economic insight and understanding, and tactical asset allocation into a totally new philosophy and approach that has been proven to produce spectacular gains with relatively low risk.

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Editorial Reviews

From the Publisher

Introducing a robust trading strategy that incorporates techniques from both technical and fundamental analysis, Mark Boucher examines the major markets and illustrates where the odds are greatest in the trader's favor.

From the Inside Flap

The Hedge Fund Edge is an indispensable guide for any investor or trader who wants to consistently profit from the markets without having to undergo huge risks. Mark Boucher, hedge fund manager and well-known speaker on trading, provides readers with a solid methodology for achieving market-beating, long-run returns with risk that is substantially below the long-run risk of U.S. and global equities. Boucher first looks at the limitations of traditional stock and bond investing, and then explains how to determine the safest and most profitable periods for investing in stocks in any country. He explains this strategy both conceptually and with an objective model that has been used to manage money successfully since the 1950s. He shows how to allocate funds among global equities at any given time while following safe, reliable, and profitable trends. The book also provides a thorough discussion of the Austrian Liquidity Cycle, an original combination of Austrian Economics, Economic Alchemy, and Liquidity Cycle Theory. Boucher explains how to use this theory to understand the major moves behind the markets and determine the most profitable market in which to invest. The Hedge Fund Edge provides critical valuation and technical models as well as essential information on stock selection techniques to help readers identify which markets and stocks are both lower-risk and higher-performing. Boucher also describes, in detail, the impact of governmental policies on the markets and the connection between macroeconomic performance and investment performance. Also included are essential timing models for determining when to invest in gold, bonds, commodities, and other asset classes, as well as methods for allocating a portfolio with the goal of investing in the very best trends at any one point in time across all asset classes. The book emphasizes the power of diversification among asset classes, such as arbitrage funds, global hedge funds, different types of futures funds, distressed bonds, and other market-uncorrelated investments. Boucher explains how this diversification can be used to build a bulletproof and highly profitable portfolio that returns consistently high profits with much lower than market risk. Boucher provides examples from his own real-time hedge fund trading experience and offers his performance as proof of what can be achieved via these techniques. The Hedge Fund Edge melds market timing, vehicle selection, risk management techniques, economic insight and understanding, and tactical asset allocation into a totally new philosophy and approach that has been proven to produce spectacular gains with relatively low risk.

Product Details

  • Hardcover: 384 pages
  • Publisher: Wiley; 1 edition (October 30, 1998)
  • Language: English
  • ISBN-10: 0471185388
  • ISBN-13: 978-0471185383
  • Product Dimensions: 9.3 x 6.4 x 1.2 inches
  • Shipping Weight: 1.7 pounds (View shipping rates and policies)
  • Average Customer Review: 4.1 out of 5 stars  See all reviews (19 customer reviews)
  • Amazon Best Sellers Rank: #967,266 in Books (See Top 100 in Books)

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Customer Reviews

19 Reviews
5 star:
 (13)
4 star:
 (1)
3 star:
 (1)
2 star:
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1 star:
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Average Customer Review
4.1 out of 5 stars (19 customer reviews)
 
 
 
 
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28 of 29 people found the following review helpful:
5.0 out of 5 stars valuable intro to global liquidity-based equity investing, March 14, 1999
By A Customer
This review is from: The Hedge Fund Edge: Maximum Profit/Minimum Risk Global Trend Trading Strategies (Wiley Trading) (Hardcover)
Boucher's "Hedge Fund Edge" is a tremendous gift for equity investor's, and is one of the absolute best stock and general financial market books I've ever read, and I've read well over 200 "investing" books in the past 8 years. Boucher, who manages the Midas Fund (Hedge Fund), rewards the reader with a tremendously hard won compendium of his knowledge and research into what drives equity prices around the globe. He begins by discussing bear market risks to your terminal wealth, and then takes the reader on a tour of Austrian economic liquidity cycle drivers. Boucher discusses the value of technical analysis in confirming the timing of fundamentally based trends, a very sound and useful approach. He promptly offers up 9 simple, yet elegant mechanical models for stock market timing, ranging from technical price and breadth based models, to those based on more indirect fundamental things like consumer sentiment gauges. He then reveals his own formula for calculating the high reward/risk times for non-United States equity investing, melding interest rate trends with stock relative strength trends... a real gift, and worth many times the book price by itself. There is a tremendous compendium of money management rules and techniques ... methods of controlling equity drawdown while allowing upside gains. Another gift. There is another tremendous section on US market individual equity investing. Boucher includes his own modified/improved version of William O'Neil's CANSLIM technique (I feel like Boucher's handling of the technical patterns for buying and selling is much superior to O'Neil's pioneering treatment... and again, worth many times the price of admission). He then covers portfolio construction, via alternative asset classes: various types of bonds and what types of market conditions favor their use, including two excellent bond market timing models; use of gold and silver with several timing models; REITS; use of arbitrage funds and global hedge funds in portfolio diversification, including specific fund recommendations for their various niche expertise! Throughout, Boucher's coverage of strict risk control is very refreshing and speaks of his real-world experience managing funds. This is the absolute BEST $50 education I've ever given myself, and I'm tremendously indebted to Mark Boucher for publishing so much of his work and experience in one book. I read it front-to-back in two days on what was supposed to be a vacation cruise... I couldn't put it down. Read it a second time on the same cruise. And a 3rd once home. Boucher graciously acknowledges his own influences (O'Neil, Zweig, Davis, Freeburg, Sullivan, Bank Credit Analyst), making for an instant listing of follow-up reads if you wish. He mentions his favorite sources of ongoing investment info as well. On a scale of 1 to 5, I give Boucher 6 stars, and if he writes another book, I'd buy it sight-unseen. Bravo.
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31 of 34 people found the following review helpful:
2.0 out of 5 stars ...on the ... rack, May 25, 2003
By 
This review is from: The Hedge Fund Edge: Maximum Profit/Minimum Risk Global Trend Trading Strategies (Wiley Trading) (Hardcover)
first, in boucher's defense, other reviewers have misunderstood the term "hedge fund" to mean "market neutral." the term "hedge fund" simply means the ability to go short in a portfolio. in that regard, the title is not misleading at all. this book does outline several short strategies based on an understanding of the liquidity cycle.

however, boucher, for as much as he espouses the austrian economic method, has forgotten that one tenant of that methodology is a total diregard for econometric forecasting. the relationships he defines in this book would have had many people in trouble in the early 2000s because, as the austrians state, what happened (past economic relationships) in the past does not have to happen in the future (these once dependable relationships may break down - with your money on the line). current monetary policy has been ineffective, and therefore, so would any of boucher's systems that rely on monetary indicators. these indicators would have been screaming "buy" the equity markets, while the equity markets themselves would have been screaming "sell us...now!"

that being said, the primary reason not to buy this book is that some of the systems that boucher gives are insightful logically, but dubious in execution. while he may give you a system, he does not give you all you need. the reader assumes that he is giving valid systems, with all pertinent information. but, he leaves certain important points out. for example, on page 138, he says that you should buy stocks when up volume on the NYSE is greater than 77% of total volume and then he gives past buy and sell dates for the strategy. after much testing, i figured out that he is not using total volume on the NYSE, but rather total volume less unchanged volume. in other words, total volume is up volume, down volume and unchanged volume for all shares trading on the NYSE. boucher's "total volume" is just up volume plus down volume. this makes a huge difference.

also, any time he uses 30-year t-bond data, good luck to you trying to figure out what he's actually using. the fed has a constant maturity series that goes back to 1977. boucher can go back to 1943 for this data. hmmmmmm. i'm sure he's using something, but i have no idea what. so, what good is the system if you don't know what he's using as the "30 year treasury yield"? and, through no fault of boucher, the 30-year is not issued any more.

he also relies quite heavily on the dow jones 20 bond index. this series was discontinued. this is not boucher's fault, of course, but just another reason to steer clear of this book.

i will say that i learned quite a bit from this book, however. it was fun to read. my problem simply resides with the somewhat tricky way that some of his systems are given. hey, i don't expect the guy to give away a proprietary system, but if you give a system, step up to the plate and tell the reader you're going to leave out some things (he actually does do this when he relays someone else's strategy). i find his method a bit disingenuous.

...

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24 of 26 people found the following review helpful:
5.0 out of 5 stars covers a lot more than just hedge funds....., August 18, 2000
By 
Ruth Henriquez Lyon (Duluth, Minnesota USA) - See all my reviews
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This review is from: The Hedge Fund Edge: Maximum Profit/Minimum Risk Global Trend Trading Strategies (Wiley Trading) (Hardcover)
There is so much information in this book that it demands at least two readings. First, there is a wealth of material on trading. The chapter on technical analysis and reading the markets is solid and contains some good tips I've not found elsewhere. There is an entire chapter on containing risk, a large focus of which is money management--this information is worth the price of the book in itself.

Boucher also offers good material on selecting equities, evaluating other asset classes, and yes, hedge funds. However, the material on hedge funds does not take up a huge amount of space, and at first I wondered why he gave the book the title it has. I have since concluded that the title reflects his overall strategy, which is one of limiting risk by spreading ones' investments among many types of securities and asset classes, both onshore and offshore.

Aside from the above mentioned material, however, Boucher also has a couple of chapters on basic economics which I found to be invaluable background information for traders (like me) without business or economic degrees. His description of the liquidity cycle is brilliant. He explains the economic theory of Austrian alchemy, and shows how that model makes better sense than Keynesian economics. He has also provided data to convince me (a social liberal) that corporate taxes have a negative effect on a nations' citizenry.

This book requires dedication to get through certain sections, but it is well worth it. Its strength is its clear elucidation of trading information and techniques, supported by a foundation of economic theory and historical data, which enables the reader to understand the context in which s/he trades.

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Inside This Book (learn more)
First Sentence:
From 1982 through most of 1997, the global financial markets have been very generous to investors. Read the first page
Key Phrases - Capitalized Phrases (CAPs): (learn more)
United States, System Spreadsheet, Loss Days, Trade Percent Change, System Description, Social Security, World War, Dow Jones, Bank Credit Analyst, Percent of Days Invested, Hong Kong, Cumulative Return, New Zealand, Investor's Business Daily, United Kingdom, Consumer Price Index, Portfolio Strategy Letter, Daily Graphs, Wall Street, Formula Research, Home Depot, Nelson Freeburg, Tom Johnson, Cisco Systems, Deutsche Mark
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