Hedge Fund Investing

Hedge Fund Investing by Kevin R. Mirabile is a comprehensive introduction to the hedge fund industry. Written from the perspective of someone who has worked as a banker, accountant, service provider, investor, and hedge fund partner, it covers the full spectrum of what you need to know about this asset class.

The book is organized into three parts. Part one covers the basics - what hedge funds are, how they differ from mutual funds, who invests in them, and how the industry has evolved from a niche corner of finance into a multi-trillion dollar business. Part two breaks down the major hedge fund strategies including global macro, long/short equity, fixed income relative value, convertible arbitrage, and multistrategy approaches, with practical examples showing how each strategy actually makes (or loses) money.

Part three is where the book gets most practical. It covers performance measurement and its pitfalls (survivorship bias, backfill bias), how fund terms and incentive structures affect investor returns, and provides a detailed framework for performing due diligence on individual funds. The final chapters examine the critical role of service providers like administrators, prime brokers, and auditors in protecting investors.

This book is best suited for finance students, aspiring hedge fund professionals, and investors considering hedge fund allocations who want a grounded, no-hype overview of how the industry actually works.