13 of 15 people found the following review helpful
Worth every penny, if not 2 and 20!,
This review is from: The Invisible Hands: Hedge Funds Off the Record - Rethinking Real Money (Hardcover)
Unlike Drobny's first book, Inside the House of Money, Invisible Hands gives a vital new purpose to his interviews with top hedge fund managers. Steve asks each top manager how he/she would approach managing real money and in so doing has opened a critical debate about how our pensions and endowments are managed. This debate is much more important than most people realize and Steve brings the crisis in pension funds and endowments into crisp relief in the opening chapter. He does so by highlighting the real impact of investment losses on the funding obligations of these institutions and the implications for their members (or tax-paying society at large) when these funding promises cannot be met. Trustees, consultants and real money managers should take careful note of several themes running through these interviews: 1) do way with benchmarks which herd investors together and creat systemic risks, and 2) focus on avoiding large losses rather than merely minimizing return volatility and tracking error. Losing less than your competitors and contemporaries won't help you meet your funding requirements and shouldn't be considered success.
As someone who knows many of the interviewees in this book I would add that Steve has an access advantage by virtue of his business interests, so the insights he has gathered are second to none. If I had a criticism it is only that Steve hasn't summarized the insights and advice in the final chapter, which would make for powerful reading. But as I have done readers can highlight the most poignant parts themselves and compile their own summary, and that's half the fun.
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