Book review

The LIBOR Fixing Scandal Gets a Conviction and a Book

Aug 9th, 2015 | Filed under: Book review, Currencies, Derivatives, Forex, Today's Post

When it all hit the fan, U.S. investigators in particular (the Brits somewhat less so) came to see Hayes as a mastermind behind its digestive generation. But Arvedlund seeks in her new book on the Libor Rigging scandal to place the role Hayes played in context.

Top Hedge Fund Managers: They Aren’t Wizards, but They Are Masters

May 28th, 2015 | Filed under: Alpha Hunters, Alpha Seekers, Alpha Strategies, Book review, Hedge Fund Industry Trends, Hedge Fund Strategies, Institutional Investing, Real Estate, Today's Post

For Faille, the stand-out essay in this collection of case studies, from CNBC's Maneet Ahuja, concerns Marc Lasry and Sonia Gardner, of the Avenue Capital Group. As Myron Scholes says in his afterword to this volume, Lasry and Gardner take returns from those whose demand for liquidity makes them willing to give them up.

Tavakoli on Death, an Industry’s Culture, and Decisions

Apr 29th, 2015 | Filed under: Best Practices, Book review, Derivatives, Risk management, Today's Post

Bill Broeksmit, with whom Tavakoli worked closely at the interest-rate swaps desk at Merrill Lynch in the late 1980s, killed himself in January 2014. The manner of this death, and the circumstances surrounding it, give this book even more gravitas than would a global financial crisis or two.

Recent Russian Investment History: Misty Water-Colored Memories

Feb 8th, 2015 | Filed under: Book review, Emerging markets, Frontier markets, Hedge Fund Strategies

William Browder's new book, Red Notice, is a fascinating window into the recent history of Russia, both when Yeltsin (and at first Putin) welcomed foreign investment and then when things turned very ugly for those investors.

Capital Markets, Derivatives and the Law

Nov 23rd, 2014 | Filed under: Book review, Derivatives, Legislation/Court rulings, Today's Post

Alan Rechtschaffen quotes two definitions of "moral hazard" in this book. The first, from Ben Bernanke, seems to get the book off to a rather awkward start. The second, from Zachary Gubler much later on, represents something of a recovery.

Death of the Dollar: Consequences Worldwide

Aug 21st, 2014 | Filed under: Alpha Strategies, Book review, Gold, Hard metals, Today's Post

Rickards' new book expands on some of the themes of his 2011 publication, Currency Wars. The new book is, specifically, about the end of a particular phase in the history of money, the reserve significance of the U.S. dollar.

Windfall: a Book on the Rise of the Climate Investor Class

Aug 6th, 2014 | Filed under: Alpha Strategies, Book review, Climate change, Energy, Social investing, Today's Post

Guest columnist Doug Friedenberg reviews "Windfall," and looks at the potential for investing in a changing climate.

Contexts for Population Growth, U.S. and China Co-Dependence, Fracking

May 26th, 2014 | Filed under: Agriculture, Book review, Emerging markets, Today's Post

What is the big picture for these authors? Are China and the U.S. trading places, so that China will have a middle class and the U.S. won’t? No. What is happening is a bit more subtle than that.

Unintended consequences: a not-so random walk down Wall Street

Apr 6th, 2014 | Filed under: Algorithmic and high-frequency trading, Book review, Today's Post

Guest columnist Ginger Szala on Michael Lewis' new book.

The Mania of Boom & Bust

Apr 2nd, 2014 | Filed under: Alpha Hunters, Alpha Strategies, Book review, Today's Post

Vikas Shah interviews Dr. Bob Swarup, CAIA, founder of Camdor Global and author of Money Mania: Booms, Panics and Busts from Ancient Rome to the Great Meltdown.

Global Warming and Human Ingenuity

Mar 17th, 2014 | Filed under: Book review, Infrastructure, Risk management, Today's Post

Early on in this book the author mentions that Deutsche Bank has made a small play in Royal Boskalis, a Dutch dredging and infrastructure company, one which may be in a position to capitalize on rising sea levels by building the sea walls this will require.

The Cheat Sheet from Years of Wizardly Advice

Mar 11th, 2014 | Filed under: Book review, Hedge Fund Industry Trends, Risk management, Today's Post

The story told here of Bruce Kovner and a botched soybeans trade conveys a lesson about the value of persistence, and a lesson about risk management.

Would-be Error Detectors: Suit Up

Feb 18th, 2014 | Filed under: Book review, CAPM / Alpha Theory, Risk management, Today's Post

That gadfly of financial modelers and quants is back. This time, Taleb writes in such a way as to establish that he isn't a mere popularize/diluter of familiar academic arguments -- which is how the critics of many of his earlier books have painted him. And them.

The Mellowing of Debate over Private Equity

Sep 18th, 2013 | Filed under: Alpha Strategies, Book review, Private Equity, Today's Post

In early 2011, Jason Kelly, a Bloomberg News reporter, decided that he had to write this book to explain to the general public how PE works. That sort of epiphany makes it a little surprising that there isn't more of an over-arching theme in the book that resulted.

A Plea to the Retail Investors

Jun 2nd, 2013 | Filed under: Alpha Strategies, Book review, Commodities, CTA, Hedge Fund Strategies, Retail Investing, Today's Post

This book, The Alternative Answer: The Nontraditional Investments that Drive the World's Best-Performing Portfolios is an appeal to the retail investor, to those author Bob Rice calls "typical investors," passing along the good news that they are no longer "stuck with the children's menu of investment options."

Hedge Funds as Metaphor: And Not in a Good Way

Apr 22nd, 2013 | Filed under: Book review, Hedge Fund Industry Trends, Media Coverage of Hedge Funds, Today's Post

One take-away from David Stockman's new best selling book is that the phrase "hedge fund" may well be on its way beyond descriptive significance. In the public realm, a "hedge fund" is now as much a metaphor as is a "Trojan horse." It is becoming a metaphor for any institution's failure to hedge.

A Fresh Look at Track Records and Risk

Nov 29th, 2012 | Filed under: Book review, Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management, Risk management, Today's Post

In Jack Schwager's view, the hedge fund industry as a whole is not a "mirage" at all. But relying on the past track record of specific funds or strategies: that is a dangerous reliance upon a mirage. Perhaps suggest that Grandma should put her nest egg in a diversified fund of funds.

Risk Budgeting: Newer Approaches than the ‘New Approach’ of 2000

Oct 10th, 2012 | Filed under: Book review, Risk management, Today's Post

It is not simply that VaR as classically formulated presumes a Bell curve with the very narrow tails that implies (although that is one of Stephen Rahl's criticisms in his contribution to this book, it is by now pretty much everybody's criticism). Other problems are: that VaR treats the past as the guarantor of the future, and that it arbitrarily identifies variance with risk.

Poisoning the Goose while Taking its Alpha Eggs

Jul 9th, 2012 | Filed under: Algorithmic and high-frequency trading, Book review, Today's Post

What happened after decimalization? Spreads did fall, but these authors say that “displayed liquidity at the National Best Bid and Offer” also fell, at least in part because there were 100 price points for each dollar now, where once there had been eight or 16, so limit orders no longer come in clusters. This in turn made “pinging and sniffing for order flow” a lot easier, heralding the rise of the sort of algorithmic trading that is to the ordinary retail investor what a hawk is to a mouse.

McMansions Aren’t Bank Accounts: Now What?

Mar 22nd, 2012 | Filed under: Book review, Real Estate, Today's Post

The authors of a new book from the Milken Institute contend that one factor working against the recovery of the housing market in the U.S. is that the residential finance system is almost entirely a ward of the federal government, "a situation that cannot be indefinitely sustained without seriously damaging monetary stability and the prospects for a return to long-term growth," they write. It is imperative, these authors believe, that the United States get its private investors involved again in the financing of housing.

Yes, the Bubble Burst: That’s What Bubbles Do

Mar 7th, 2012 | Filed under: Book review, Today's Post

The lending encouraged by the monetary policies of a Greenspan or a Bernanke “was bound to put money into the hands of people who didn’t know what to do with it,” writes the author of a new book. The consequences of such lax policies are what we have witnessed since 2007. Bubbles eventually burst, simply because that is what bubbles do. It is better to stop blowing them than to look about for a needle to blame for the prick.