The invisible hands : top hedge fund traders on bubbles, crashes, and real money / Steven Drobny ; foreword by Nouriel Roubini and Jared Diamond.

Previous other title information: Hedge funds off the record--rethinking real money

Includes bibliographical references and index.

THE INVISIBLE HANDS; Contents; Foreword to the 2011 Edition; Foreword to the 2010 Edition; Preface; Preface to the 2011 Edition; Preface to the 2010 Edition; Part One REAL MONEY AND THE CRASH OF '08; Chapter 1 Rethinking Real Money; I. Why Real Money?; Size; Impact on Society; 2008 Losses; Taxpayer; II. The Evolution of Real Money; In the Beginning, There Were Bonds; Along Came Inflation; The 60-40 Model and the Great Moderation; The Dot-Com Crash; We Are All Endowments Now; The Crash of '08; Less Endowed; Pensions Are Different; III. RETHINKING REAL MONEY-MACRO PRINCIPLES.
Chapter 2 The Family Office ManagerFrom mid-2008 to mid-2009, you took a year off and went to cash. Isgoing to cash the key differentiator between hedge funds and real money?; How do you value cash?; Looking back at Japan in 1990 or at the United States in 1929, the valueof cash looked pretty good 20 or 30 years after these events. Yet for thelast 20 to 30 years in the U.S., cash looks like a pretty bad investment.; What is the appropriate cash level for an endowment or pension?
We all know that correlations go to one in a disaster, yet it still catchespeople out. What can investors do to prepare for downside tail events?In doing this analysis, are you guilty of investing in the rear viewmirror?; Being cognizant of what everyone else is doing seems to be a big partof your analysis.; So real money managers should use a valuation approach to raise orlower equity and equity-like exposures and cash and cash-like exposures?; What other flaws in the real money world were exposed in 2008?; Should real money funds manage to a risk target rather than areturn target?
Does asset allocation work in a world where extreme events happen moreoften than predicted?If size is the enemy of flexibility, what should large real money fundslike CalPERS, with 200 billion in assets, do?; How should a real money fund manage its portfolios with respectto inflation?; Is there anything else you learned from 2008?; Part Two The Invisible Hands; Chapter 3 The House; How did you get into this business?; How does the feedback of being right or wrong affect you?; At what point in your career did you know you had skill?
If you were asked to run one of the Swedish AP pension funds as part ofyour social welfare duty, how would you go about it?So the weaknesses in the real money world are structural. How wouldyou go about maximizing the strengths, such as the strong balance sheetand credit worthiness that you mentioned?; Isn't levering up a portfolio with illiquid assets what caused so muchtrouble for investors in 2008, especially in the endowment and pensionworld?; What are your thoughts on diversification, which didn't provide muchsafety in 2008?; What else do most institutional investors get wrong?

Hedge fund managers who survived and profited through the 2008 financial crisis share their secrets In light of the colossal losses and amidst the resulting confusion that still lingers, it is time to rethink money management in the broadest of terms. Drastic changes still need to be made, and managers who actually made money during 2008 make for a logical starting place. This updated and revised edition of The Invisible Hands provides investors and traders with the latest thinking from some of the best and the most successful players in money management, highlighting the specific risk and return objectives of each, and discussing the evolution of certain styles and beliefs in money management. Divulges how top financial professionals are looking forward by thinking clearly, managing risk, and seeking a new paradigm of profit making opportunities in the post-crisis world Outlines investments and strategies for the rocky road ahead endowments, foundations and family offices should rethink how they approach asset allocation and portfolio construction Written by respected industry expert Steven Drobny Page by page, the professionals found in this book reveal their own approaches to markets, risk, and the broader world in which we live, as well as their advice on how investors should be approaching money management in today's uncertain world.Gives guidance on how traditional investors such as pensions, endowments, foundations and family offices should rethink how they approach asset allocation and portfolio construction Written by respected industry expert Steven Drobny Page by page, the professionals found in this book reveal their own approaches to markets, risk, and the broader world in which we live, as well as their advice on how investors should be approaching money management in today's uncertain world. Gives guidance on how traditional investors such as pensions, endowments, foundations and family offices should rethink how they approach asset allocation and portfolio construction Written by respected industry expert Steven Drobny Page by page, the professionals found in this book reveal their own approaches to markets, risk, and the broader world in which we live, as well as their advice on how investors should be approaching money management in today's uncertain world.