Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined

Efficiently Inefficient is a book that discusses key trading strategies used by hedge funds and provides insights into the secret world of active investing. It combines the latest research with real-world examples and features interviews with leading hedge fund managers.

Format: Paperback / softback
Length: 368 pages
Publication date: 17 September 2019
Publisher: Princeton University Press

Efficiently Inefficient: Unveiling Key Trading Strategies Used by Hedge Funds and Demystifying the Secret World of Active Investing

In his insightful book, "Efficiently Inefficient," renowned financial economist Lasse Heje Pedersen delves into the world of hedge funds, shedding light on the key trading strategies employed by these elite investment firms. Combining cutting-edge research with real-world examples, Pedersen offers a comprehensive guide to understanding the intricacies of active investing.

Equity Strategies: Pedersen explores various equity strategies employed by hedge funds, including long-short equity, value investing, and growth investing. He explains how these strategies aim to generate profitable returns by identifying undervalued or overvalued stocks and taking appropriate positions. Pedersen also discusses the importance of risk management and portfolio diversification in these strategies.

Macro Strategies: Macro strategies play a significant role in hedge fund investment decisions. Pedersen discusses the strategies used by hedge funds to analyze and predict economic trends, such as interest rates, inflation, and GDP growth. He explains how these strategies can help hedge funds navigate market volatility and generate profitable returns.

Arbitrage Strategies: Arbitrage strategies involve taking advantage of price discrepancies between different markets or asset classes. Pedersen explains how hedge funds identify and exploit these arbitrage opportunities, leveraging their expertise and market knowledge to generate profits. He also discusses the risks and challenges associated with arbitrage trading.

Fundamental Tools for Portfolio Choice, Risk Management, Equity Valuation, and Yield Curve Trading: Pedersen provides a comprehensive overview of the fundamental tools used by hedge funds for portfolio choice, risk management, equity valuation, and yield curve trading. He explains how these tools help hedge funds optimize their investment strategies and make informed decisions.

Interviews with Leading Hedge Fund Managers: "Efficiently Inefficient" features interviews with some of the most influential hedge fund managers in the industry. Lee Ainslie, Cliff Asness, Jim Chanos, Ken Griffin, David Harding, John Paulson, Myron Scholes, and George Soros share their insights, experiences, and strategies for successful hedge fund management. These interviews provide valuable insights into the minds of top investors and their approaches to investing.

In conclusion, "Efficiently Inefficient" is a must-read for anyone interested in understanding the world of hedge funds and the key trading strategies used by these investment firms. By combining research, real-world examples, and interviews with leading hedge fund managers, Lasse Heje Pedersen provides a comprehensive guide to active investing. Whether you are a seasoned investor or a novice looking to expand your knowledge, this book offers valuable insights and strategies for achieving financial success.

Weight: 632g
Dimension: 157 x 233 x 22 (mm)
ISBN-13: 9780691196091