Table of Contents
Introduction..................................................................1
Part I: What Is a Hedge Fund, Anyway? .........................7
Chapter 1: What People Talk About When They
Talk About Hedge Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Chapter 2: Examining How Hedge Funds Are Structured . . . . . . . . . .27

Chapter 3: Not Just a Sleeping Aid: Analyzing SEC Registration . . . .47

Chapter 4: How to Buy into a Hedge Fund . . . . . . . . . . . . . . . . . . . . . . . .59

Part II: Determining Whether Hedge Funds
Are Right for You ........................................................71
Chapter 5: Hedging through Research and Asset Selection . . . . . . . .73

Chapter 6: Calculating Investment Risk and Return . . . . . . . . . . . . . . .95

Chapter 7: You Want Your Money When? Balancing
Time and Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123

Chapter 8: Taxes, Responsibilities, Transparency,
and Other Investment Considerations . . . . . . . . . . . . . . . . . . . . . . . . . .135

Chapter 9: Fitting Hedge Funds into a Portfolio . . . . . . . . . . . . . . . . . .151

Part III: Setting Up Your Hedge Fund
Investment Strategy ..................................................165
Chapter 10: Buying Low, Selling High: Using
Arbitrage in Hedge Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167