Diary of a Hedge Fund Manager, by Keith McCullough and Rich Blake, discusses the hedge fund industry and provides an insider perspective on asset management.
Some of the most memorable quotes include:
"I might not have fully appreciated the value of preparation, but I’ve since found it trumps all else, in sports or business."
"By the middle of 2006, it was starting to become clearer to me that the hedge fund industry was becoming a dangerous bubble, with too much money chasing the same trades. This was leading hedges down narrower and narrower paths in which they bought riskier credit instruments to round out their strategies, and they morphed into lenders and purveyors of private placements, fueling a private equity bubble forming alongside an even larger housing bubble all contained within an even larger credit bubble, or what George Soros would call the “Super Bubble,” formed over three decades of credit expansion going back to the Reagan-Thatcher era of laissez-faire market conditions."
"In 1971, the entire hedge fund industry only had assets of $3 billion, according to a study done by New York-based hedge fund advisory firm Hennessee Group. Now a handful of elite managers were taking that much home per year in just pure profit from investor fees."
"Regardless of all the many signals, no one set of factors can or will ever tell an entire story. History will assign a neat set of circumstances for this past crash — the popping of the housing bubble, one created in large part by the U.S. government-sponsored entities Freddie and Fannie, exacerbated by an overindulgent credit derivatives market. Sounds right."
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