Daniel A. Strachman - AARP Getting Started in Hedge Funds. From Launching a Hedge Fund to New Regulation, the Use of Leverage, and Top...

MAKING YOUR MONEY WORK FOR YOU

Maybe youre thinking its time to review your investment strategy and make the most of the money you have today. Maybe youve already built a financially successful retirement egg and want to protect what youve built. Or maybe you need to bulk up your earnings to ensure your familys future.

Welcome to money for grown-ups. Where do you turn for credible information?

Dedicated to helping you protect your assets, stretch your dollars, and bolster your longterm security, AARP can offer you powerful solutions. Whatever your strategy for managing money, weve got suggestions that will help from saving money on that next big purchase to planning your charitable giving. If youre taking your job to the next level or building up a second career, weve got strategies that will help you make your mark.

You may think your money or your financial advisor should be working harder for you. You may be watching market trends and seeing new opportunities. And, of course, you want to protect yourself and your loved ones from scams and data breaches. We can give you the support you need.

And turn to us for fun, too. (Is it time for that car, that trip, that weekend home youve always wanted?) Because that, too, is what this time of your life is about.

AARP is a nonprofit, nonpartisan membership organization that helps people 50 and older improve their lives. For more than 50 years, AARP has been serving our members and society by creating positive social change. AARPs mission is to enhance the quality of life for all as we age; lead positive social change; and deliver value to members through information, service and advocacy. This information in this book is for educational purposes and does not constitute financial advice.

Books in the Getting Started in Series

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Getting Started in Investment Clubs by Marsha Bertrand

Getting Started in Internet Auctions by Alan Elliott

Getting Started in Stocks by Alvin D. Hall

Getting Started in Mutual Funds by Alvin D. Hall

Getting Started in Estate Planning by Kerry Hannon

Getting Started in Online Personal Finance by Brad Hill

Getting Started in 401(k) Investing by Paul Katzeff

Getting Started in Security Analysis by Peter J. Klein

Getting Started in Global Investing by Robert P. Kreitler

Getting Started in Futures, Fifth Edition by Todd Lofton

Getting Started in Financial Information by Daniel Moreau and Tracey Longo

Getting Started in Emerging Markets by Christopher Poillon

Getting Started in Technical Analysis by Jack D. Schwager

Getting Started in Real Estate Investing by Michael C. Thomsett and Jean Freestone

Getting Started in Tax-Savvy Investing by Andrew Westham and Don Korn

Getting Started in Annuities by Gordon M. Williamson

Getting Started in Bonds, Second Edition by Sharon Saltzgiver Wright

Getting Started in Retirement Planning by Ronald M. Yolles and Murray Yolles

Getting Started in Project Management by Paula Martin and Karen Tate

Getting Started in Six Sigma by Michael C. Thomsett

Getting Started in Rental Income by Michael C. Thomsett

Getting Started in REITs by Richard Imperiale

Getting Started in Property Flipping by Michael C. Thomsett

Getting Started in Fundamental Analysis by Michael C. Thomsett

Getting Started in Chart Patterns by Thomas N. Bulkowski

Getting Started in ETFs by Todd K. Lofton

Getting Started in Swing Trading by Michael C. Thomsett

Getting Started in Options, Seventh Edition by Michael C. Thomsett

Getting Started in A Financially Secure Retirement by Henry Hebeler

Getting Started in Candlestick Charting by Tina Logan

Getting Started in Forex Trading Strategies by Michael D. Archer

Getting Started in Value Investing by Charles Mizrahi

Getting Started in Currency Trading, Second Edition by Michael D. Archer

Getting Started in Options, Eighth Edition by Michael C. Thomsett

Getting Started in Rebuilding Your 401(k), Second Edition by Paul Katzeff

Getting Started in Mutual Funds, Second Edition by Alvin D. Hall

Copyright 2011 by Daniel A. Strachman. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging-in-Publication Data:

Strachman, Daniel A., 1971

Getting started in hedge funds: from launching a hedge fund to new regulation, the use of leverage, and top manager profiles / Daniel A. Strachman. 3rd ed.

p. cm. (Getting started in..... ; 88)

Includes bibliographical references and index.

ISBN 978-0-470-63025-9 (pbk.); ISBN 978-1-118-01896-5 (ebk);
ISBN 978-1-118-01897-2 (ebk); ISBN 978-1-118-01898-9 (ebk)

1. Hedge funds. I. Title.

HG4530.S837 2010

332.64524dc22
2010023267

To my wife, Felice,
my daughter, Leah
and my son, Jonah

Acknowledgments

The idea for the first edition of this book came to me in the mid-1990s while I was working at Cantor Fitzgerald and, as a result of a number of unique events, that book became a reality in January of 2000. Now some ten years later, Wiley is publishing a third edition.