Hedge Funds: Courtesans of Capitalism [Hardcover]

Peter Temple (Author)

Book Description

ISBN-10: 0471899739 | ISBN-13: 978-0471899730 | Publication Date: March 30, 2001 | Edition: 1

Like the courtesans of a bygone age, hedge funds cater to the wealthy and project an aura of mystery and excitement. But as the Long Term Capital Management debacle showed, their activities affect us all.
Far from neutralising risk, as their name might suggest, some are simply vehicles for large-scale speculation - raiding currencies, disrupting bond markets, and embarrassing governments.
This book looks in detail at the secret world of hedge funds, how they work, the larger than life characters who run them, their private passions and the risks they run.

Editorial Reviews

Review

"the book is an excellent primer for students of finance and would-be masters of the universe." -- Sunday Times, 1st April 2001

From the Inside Flap

This book is about hedge funds, their influence on the global financial markets and how they affect us all. Hedge funds have come a long way since Alfred Winslow Jones first used them in the 1950s and '60s to reduce risk. Hedge funds today can wield immense power capable of disrupting the financial markets.
More alarming still is the hedge fund in your bank, epitomised by so-called 'proprietary trading'. Banks trade with, lend to, and mimic hedge funds in their own trading - generating fat bonuses for their managers. Customers rarely know, let alone are consulted about it. As with many other 'enthusiasms' to which banks have been prone, it may end in tears.
The book's controversial conclusion is that it is banks' exposure to hedge funds and their sometimes inept proprietary trading that needs to be regulated more closely. It is in the urgent interests of the global banking system as a whole, and concerns all of us.

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Product Details

• Hardcover: 280 pages
• Publisher: Wiley; 1 edition (March 30, 2001)
• Language: English
• ISBN-10: 0471899739
• ISBN-13: 978-0471899730
• Product Dimensions: 9.2 x 6.1 x 0.7 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 3.0 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #400,974 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

1 of 1 people found the following review helpful:

5.0 out of 5 stars Author was correct: 2008-09 Wall Street turmoil almost brought U.S. financial system down, September 29, 2010

By 

Artum101.info (Los Angeles, CA USA) - See all my reviews

This review is from: Hedge Funds: Courtesans of Capitalism (Hardcover)

Of course, there are many books on hedge funds (HF), though nobody challenged irresponsible behavior of governing authorities and HF managers better than the author of this well researched content. 2008-09 Wall Street turmoil almost brought U.S. financial system down. It happened 10 years after this book was published... The main point Peter Temple was making in the book - too often governing authorities "turn a blind eye to their activities" and this enables hedge funds to brake currencies, bankrupt economies and destabilize the financial system. LTCM case showed how well connected HF managers are as was historically the case with the professionals in comparison.

I like that author introduce the Sharpe ratio with concrete numbers, not abstract formula:
"Let's say for the sake of argument that we have two funds: one with an annual return of 24% and a volatility of 20%, and one with a return of 16% and a volatility of 10%. The rate of return on three-month Treasury bills is 4%.
The Sharpe ratio for the first fund is (24 - 4) / 20 = 20 / 20 = 1.0.
The Sharpe ratio for the second fund is (16 - 4) / 10 = 12 / 10 = 1.2"
Based on these Sharpe ratio calculations which fund is more promising for investor? Find the answer on pp. 16-17 and enjoy the wonderful reading.

Very well written are all personal accounts of hedge funds managers and investors. My favorite is Alfred Winslow Jones' journey in creating his own successful fund and at the same time developing the sound principles of "hedge" against a drop in the market.

After 2008-09 financial crisis the book content has even larger meaning and lessons to investors. It just proves the correct analysis of Peter Temple. Author deserves our gratitude and accolades. Thank you.

1 of 7 people found the following review helpful:

1.0 out of 5 stars Better Places to find an introduction to Hedge Funds, March 2, 2003

By A Customer

This review is from: Hedge Funds: Courtesans of Capitalism (Hardcover)

There are much better books that providing an introduction to Hedge Funds. I would suggest either "The Prudent Investor's Guide to Hedge Funds: Profiting from Uncertainty and Volatility" by James P. Owen or "Investing in Hedge Funds" by Joseph Nicholas. If you are interested in learning more about the leading hedge fund personalities and organizations I would suggest the book "The New Investment Superstars: 13 Great Investors and Their Strategies for Superior Returns" by Lois Peltz.