- First posted a link to an excerpt of this book here 2 weeks ago.
- Finished reading this now. My verdict : Very very good. Am surprised there isn't more publicity about this book (a la The Big Short). If I was back running a desk, I would make this compulsory reading for all my trainees/traders.
- History of hedge funds. Covers all the main financial market events from the 1970s to present. Well researched and written with extensive access to insiders. BOE/92, Thai Baht/97, LTCM/Russia/98, Dotcom, Amaranth, etc etc .. its all here with details I never knew about.
- Cast of characters include all the big names like George Soros, Michael Steinhardt, Julian Robertson, Paul Tudor Jones, et al. Describes their trading styles, successful and disastrous trades, psychology, etc in great detail.
- One of my favorite chapter is "Soros vs Soros" which tells of how Soros' internal struggle between his trading and statesman personas resulted in large losses and missed opportunities in Indonesia and Russia in the late 90s.
- This is not just another of a plethora of books out there about hedge funds and trading. This is really top quality and very entertaining. I cannot recommend this highly enough.
- NY Times review here. Slate review here.
My Rating : 5/5
4 comments:
Something I need to ponder upon :=
Quote
(Paul Tudor) Jones is a trend follower because he knows that contrary to the efficient-market view, investors frequently react to information gradually. Pension funds, insurance funds, mutual funds, and individuals all absorb developments on their own timescales, so prices respond incrementally rather than in one jump. But precisely because he understands the markets' momentum, Jones has a knack for sensing when it has gone too far. He is the last person to exacerbate a trend, because once a move becomes overextended, he is looking to profit from its reversal.
... When a trend begins to distort the economy because it has lost touch with fundamentals, the most famous hedge-fund trend follower of them all is likely to become a trend breaker.
Unquote
I just ordered mine. I'm looking forward to reading it.
BH
bought the book last week on the strength of your recommendation ..
Thanks !
This is one of those books that you want to read slowly and enjoy the journey, hoping never to arrive at the destination.
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