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Diary of a Very Bad Year: Confessions of an Anonymous Hedge Fund Manager Paperback – June 22, 2010
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“Diary of a Very Bad Year is a rarity: a book on modern finance that’s both extraordinarily thoughtful and enormously entertaining.”
— James Surowiecki, author of The Wisdom of Crowds
“A great read. . . . HFM offers a brilliant financial professional’s view of the economic situation in real time, from September 2007, when problems in financial markets began to surface, until late summer 2009.”
— Booklist
“n+1 is the rightful heir to Partisan Review and the New York Review of Books. It is rigorous, curious and provocative.”
— Malcolm Gladwell
A profoundly candid and captivating account of the economic crisis and subprime mortgage collapse, from an anonymous hedge fund manager, as told to the editors of New York literary magazine n+1.
- Print length260 pages
- LanguageEnglish
- Publication dateJune 22, 2010
- Dimensions5.31 x 0.61 x 8 inches
- ISBN-100061965308
- ISBN-13978-0061965302
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Review
“My favorite book written about the financial crisis. . . . Highly recommended.” — Ezra Klein, The Washington Post
“Diary of a Very Bad Year is a rarity: a book on modern finance that’s both extraordinarily thoughtful and enormously entertaining.” — James Surowiecki, author of The Wisdom of Crowds
“A highly readable refresher on the financial crisis. . . . Amazingly―and largely because of the anonymity he’s granted―the nameless hedgie gives straight answers. . . . While HFM comes off as a bro you don’t want to mess with, the book is packed with plenty of humor.” — The Wall Street Journal
“Eminently readable. . . . Always engaging. . . . Although it is not fiction, Diary of a Very Bad Year is, in its own way, an attempt to bridge the gulf between the literary and financial worlds.” — Financial Times
“Diary of a Very Bad Year does something few of the books written about the crisis have accomplished: It delivers an insider perspective on the events in real time, rather than dwelling on conclusions reached after the fact.” — BusinessWeek
“HFM does a good job of teaching the reader how mortgage-backed paper, money-market funds, and credit-default swaps work, while offering up juicier tidbits about the ethics and legalities of his sector.” — Time Out New York
“Diary of a Very Bad Year takes the first steps toward putting a human face on the funds.” — Newsweek
“A great read. . . . HFM offers a brilliant financial professional’s view of the economic situation in real time, from September 2007, when problems in financial markets began to surface, until late summer 2009.” — Booklist
“A wonderful book. Diary of a Very Bad Year is a fascinating commentary on the crisis and a great read.” — David Backus, Professor of Economics and Finance, NYU’s Stern School of Business
“Thoughtful, funny and unpretentious. . . . An unexpected treat that belongs on the shelf once labeled belles-lettres. . . . It is plenty enjoyable to watch HFM’s mind unfurl.” — Dwight Garner, The New York Times
“A short, illuminating set of interviews with one savvy, articulate Wall Streeter. . . . A penetrating, educational and at times harrowing play-by-play.” — Time magazine
“n+1 (in the person of Keith Gessen) lends an outsider’s ear to the brilliant disquisitions of a guy caught in the middle of it all. . . . Excellent reading. . . . Compelling.” — The Millions
From the Back Cover
The First Book from n+1—an Essential Chronicle of Our Financial Crisis
HFM: Where are you going to buy protection on the U.S. government's credit? I mean, if the U.S. defaults, what bank is going to be able to make good on that contract? Who are you going to buy that contract from, the Martians?
n+1: When does this begin to feel like less of a cyclical thing, like the weather, and more of a permanent, end-of-the-world kind of thing?
HFM: When you see me selling apples out on the street, that's when you should go stock up on guns and ammunition.
About the Author
n+1 is a twice-yearly print journal of politics, literature, and culture. Founded in 2004, it has been praised by the New York Times, TLS, Boston Globe, and Le Revue Des Deux Mondes, and reviled by the New Criterion and Gawker. In 2006 it won the Utne Independent Press Award for Best Writing. An anthology of its most significant essays was published in 2008 by Suhrkamp, in German.
Product details
- Publisher : Harper Perennial; 1st edition (June 22, 2010)
- Language : English
- Paperback : 260 pages
- ISBN-10 : 0061965308
- ISBN-13 : 978-0061965302
- Item Weight : 7.7 ounces
- Dimensions : 5.31 x 0.61 x 8 inches
- Best Sellers Rank: #138,947 in Books (See Top 100 in Books)
- #20 in Futures Trading (Books)
- #146 in Investment Analysis & Strategy
- #379 in Introduction to Investing
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About the authors

n+1 is a print and digital magazine of literature, culture, and politics published three times a year. We also post new online-only work several times each week and publish books expanding on the interests of the magazine.
Praise for n+1:
"n+1 has reinvented the little magazine."
--Toril Moi
"An island of hope in a sea of inanity."
--Nancy Fraser
"A concentration of work without precedent or equal in the US or anywhere else."
--Francis Mulhern, New Left Review
"The rightful heir to the Partisan Review and The New York Review of Books. It is rigorous, curious, and provocative."
--Malcolm Gladwell
"One of the consistently excellent periodicals of the last decade."
--Pankaj Mishra
"A lively, stimulating magazine of a rare intellectual scope."
--Joyce Carol Oates
"Just when you think you’re intellectually alone in the world, something like n+1 falls into your hands."
--Jonathan Franzen
"So many good writers have come tumbling out of that small journal in the past few years that it’s begun to resemble an intellectual clown car."
--The New York Times
"The best goddamn literary magazine in America."
--Mary Karr
"I think I’m in more danger from n+1 than from al Qaeda."
--Salman Rushdie
You can read more about us, browse web-only content, and find contact information at www.nplusonemag.com.

Keith Gessen was born in Moscow in 1975 and came to the United States with his family when he was six years old. He is a co-founder of the literary magazine n+1 and the author of the novels All the Sad Young Literary Men and A Terrible Country. He has written about Russia for the London Review of Books, n+1, the Nation, the New Yorker, and the New York Times Magazine, and has translated or co-translated several books from Russian, including Voices from Chernobyl by Svetlana Alexievich, There Once Lived a Woman Who Tried to Kill Her Neighbor's Baby by Ludmilla Petrushevskaya, and It's No Good by Kirill Medvedev. He is also the editor of the n+1 books What We Should Have Known, Diary of a Very Bad Year: Confessions of an Anonymous Hedge Fund Manager, and City by City. He lives in New York with his wife, the author and publisher Emily Gould, and their son, Raphy, who likes squishy candy.
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There are some particularly valuable conversations that illustrate, through examples, the risk magnification from instruments that become illiquid combined with leverage. In a panic, the interviewee points out how contracts (such as for collateral haircuts, or funding commitment period) may not be honored (a law suit will be irrelevant because it will not save the fund in time), how word gets around the market and, together with asset liquidations and investor withdrawal restrictions, causes a rapid, downward spiral.
There were also some interesting observations, that you wouldn't necessarily know without being in the industry. One was that, at the time of the Lehman collapse, arbitrage trades unusually existed for which very few players had the capital to be able to take advantage, such as simple covered interest arbitrage (buying a high quality foreign government bond and hedging out the FX exposure, which should produce a return close to U.S. Treasuries). The "basis" (difference between the U.S. Treasury and the hedged foreign government investment) between the two moved out from the usual 2 basis points (2/100ths of 1%) to 20 b.p.s That's something, I'm sure, a better-capitalized bank like JPMorgan Chase was able to use to considerable profit advantage.
If you have a interest in the day-to-day workings of hedge funds (and bank prime-brokerage), perhaps as a credit officer, a internal audit professional or a regulator, I thoroughly recommend the book. It's a relatively quick read and the anonymous hedge fund manager is a smart and thoughtful person who gives many highly insightful comments.
There is a big difference, when MONEY TALKS.
Because MONEY and MARKETS is a true mirror of what is REALLY GOING ON. It is the best B.S. DETECTOR. Professors and academia DO NOT day to day place bets at various markets, do not put trades, do not watch CDS curves live as history is being made and do not make or loose millions every day by prooving themselves RIGHT or WRONG. Therefore ACADEMICAL books are academical.
But when you want REAL STUFF, when you need REAL ADVICE, you seek views and advice of REAL MARKET PEOPLE who have seen and done it all personally.
THis books is equal to best Soros books i read and as wity and funny as some best Buffet articles and comments, but it is even better to some extent. WHY?
Firstly, BECAUSE the AUTHOR is anonymous! He has no political, advertising or PR components that are always present in the books written by big and active hedge fund managers or great investors under their real names. (they need to ensure clients stay and also new ones come and this influences and limits their books.) HFM has no such constrains.
Secondly, this guy is apparently young and pretty rich person. Usually only loosers or sales people (Michael Lewis) from financials world take their time to write books, when they are young and still working.
The real deal people are too busy making money. So we should say thank you to the CRISIS, that it allowed such a YOUNG person as HFM some time to share his reflections on a VERY RECENT events, instead of dedicating all his time to making extra 100,000,000 US Dollars for himself and his former HEDGE FUND!
Finally, Anyone planning to invest in any MARKETS must read these two classical books:
1. "Where are the customers yachts" (one of Warren Buffet favorite books)
2."Letters of Menahem Mendl and Shayne Shendl" by Sholem Alleichem.
(It is reccomended to read them BEFORE you LOOSE most of your money, and not AFTER)











