Managing Hedge Fund Risk: From the Seat of the Practitioner: Views From Investors, Counterparties, Hedge Funds and Consultants [Hardcover]

Virginia Reynolds Parker (Editor)

Book Description

Publication Date: October 1, 2000

An expansive volume which addresses key hedge fund risk management issues with rigour. The book provides quality information for risk managers within different types of investment structures, such as investment banks, funds of funds, family offices, asset management firms, pension funds, endowments and foundations, and consultancies.

Editorial Reviews

Review

Each chapter opens the door to a new microcosm of risk management. Well worth the effort. -- Susan L. Barreto, Senior Reporter, Hedge World

The book is a welcome reflection of the maturity of the hedge fund industry...its greatest virtue is its diversity. -- David Mengle, Rutter Associates, Risk, 2001

About the Author

Virginia Reynolds Parker is the founder and president of Parker Global Strategies. Ms Parker has expertise in both traditional and alternative investment strategies, combined with a strong background in currency risk and returns, independent risk measurement and management of multi-manager hedge fund portfolios and principal protection guarantees. She is well known for developing industry-recognised performance benchmarks for foreign exchange and fixed income trading. Her research is widely published and she is a frequent speaker at industry conferences. From 1988 until 1995, Ms Parker was managing director and director of research and risk management at Ferrell Capital Management, where she guided the firm's portfolio structuring, asset allocation strategies, new product development and risk management. While at Ferrell, Ms Parker developed the Ferrell FX Index. She purchased the Index in July 1997. Previously, she was the chief investment officer for a family office. Ms Parker earned an AB in economics and political science from Duke University. She is registered as an Associated Person with the National Futures Association and as a Direct Participation Principal with the NASD.

Product Details

• Hardcover: 350 pages
• Publisher: Risk Books; 1st edition (October 1, 2000)
• Language: English
• ISBN-10: 1899332782
• ISBN-13: 978-1899332786
• Product Dimensions: 9.2 x 6.4 x 1.5 inches
• Shipping Weight: 2.3 pounds (View shipping rates and policies)
• Average Customer Review: 3.7 out of 5 stars  See all reviews (3 customer reviews)
• Amazon Best Sellers Rank: #3,018,316 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

21 of 27 people found the following review helpful:

5.0 out of 5 stars Understanding and Taming Market Risk, April 19, 2001

By 

Chidem Kurdas (New York City) - See all my reviews

This review is from: Managing Hedge Fund Risk: From the Seat of the Practitioner: Views From Investors, Counterparties, Hedge Funds and Consultants (Hardcover)

This is the one book you want your pension officer to read before he decides what to do with your retirement money. Last year hedge funds did radically better than market indexes and mutual funds. More and more pension plans, insurance companies and other institutions are putting money into these non-traditional investment pools. Hedge funds differ from other types of investment in various ways, but as their name suggests, their main promise is to "hedge" against market risk. The right kind of fund is not correlated with markets, so that when for example the Dow and Nasdaq head south, your hedge investment does not go down with them. How and whether managers achieve this is no simple matter. "Each fund is different," one of the authors in this comprehensive guide writes (p.95). Virginia Parker, the editor of the book, is just the right person to unpack the complex ideas of risk and its management. A recognized authority in the development of specialized performance benchmarks, she tailors and manages portfolios for institutional clients. As a manager of hedge fund managers, she knows the industry inside out. Parker has put together a stellar group of authors. These experienced investors, fund managers, consultants, bankers and brokers present distinct perspectives on the industry. As Parker and Randolf Warsager write in the useful introduction, "This is not a theoretical volume-most of the authors are practitioners..." The book is not easy to get through, however. It is dense with information that requires close attention. Some readers may find it more useful as a reference for specific topics rather than a cover-to-cover read. But if you're willing to put in the effort, there are rewarding insights in every one of the 24 chapters. Here is an example from Parker. In 1998, the year of the Long Term Capital Management debacle, some investors wanted to withdraw their money from certain managers. These managers had invested in Russian bonds, yet "knew little about sovereign risk, Russian politics and Russian counterparties." (p.82) But recognizing the danger did not help the investors. Because of terms they had previously accepted, they were forced to wait several months for redemption of their capital. By that time, "most of the hedge fund assets were gone." This is the sort of thing that gave hedge funds a bad name and led to their being branded as very risky investments. Parker details an approach, using a trading manager, that helps select the right terms and agreement for an investor, reducing the danger of such situations. The other authors also provide practical pointers. As one of them, Tanya Styblo Beder, explains, "What must be avoided are risks that are taken without proper compensation, risks that are left unmanaged, or risks that are too large in relation to the capital." (p.155) The bottom line: For many investors, avoiding hedge funds is at least as risky as investing in them. In these markets, proper hedging can preserve your nest egg. But read the book first. Or make sure your pension officer does.

Chidem Kurdas New York City

5.0 out of 5 stars Good Addition, January 25, 2011

By 

Eugene H. Steele "daytradewithmecom" (Fort Lauderdale, Fl United States) - See all my reviews
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This review is from: Managing Hedge Fund Risk: From the Seat of the Practitioner: Views From Investors, Counterparties, Hedge Funds and Consultants (Hardcover)

I don't know if the author's background is more impressive than the book but, if you want to begin this journey than you will benefit from this text.

5 of 9 people found the following review helpful:

1.0 out of 5 stars Just a bunch of already published info rehashed, May 9, 2002

By A Customer

This review is from: Managing Hedge Fund Risk: From the Seat of the Practitioner: Views From Investors, Counterparties, Hedge Funds and Consultants (Hardcover)

This info is available elsewhere and there's no value add by the author.