Inside the House of Money: Top Hedge Fund Traders on Profiting in a Global Market
Praise for Inside the House of Money\ "Everyone loves to talk about hedge funds—except the people who actually run them. Until now. This book offers a unique and illuminating insight into a hitherto inaccessible and sometimes downright secretive world. And quite fascinating it proves to be. Future historians will thank Drobny for capturing the thinking that underlies a quiet financial revolution."\ —Niall Ferguson, Laurence A. Tisch Professor of History, Harvard University and author of...
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Inside the House of Money lifts the veil on the typically opaque world of hedge funds, offering a rare glimpse at how today's highest paid money managers approach their craft. Author Steven Drobny demystifies how these star traders make billions for well-heeled investors, revealing their theories, strategies and approaches to markets. Drobny, cofounder of Drobny Global Advisors, an international macroeconomic research and advisory firm, has tapped into his network and beyond in order assemble this collection of thirteen interviews with the industry's best minds. Along the way, you'll get an inside look at firsthand trading experiences through some of the major world financial crises of the last few decades. Whether Russian bonds, Pakistani stocks, Southeast Asian currencies or stakes in African brewing companies, no market or instrument is out of bounds for these elite global macro hedge fund managers. Highly accessible and filled with in-depth expert opinion, Inside the House of Money is a must-read for financial professionals and anyone else interested in understanding the complexities at stake in world financial markets. "The ruminations of supposedly hush-hush hedge fund operators are richly illuminating." —New York Times
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ForewordixPrefacexi1Introduction to Global Macro Hedge Funds12The History of Global Macro Hedge Funds53The Future of Global Macro Hedge Funds314The Family Office Manager: Jim Leitner (Falcon Management)355The Prop Trader: Christian Siva-Jothy (SemperMacro)716The Researcher: Dr. Andres Drobny (Drobny Global Advisors)1037The Treasurer: Dr. John Porter (Barclays Capital)1338The Central Banker: Dr. Sushil Wadhwani (Wadhwani Asset Management)1619The Dot-Commer: Peter Thiel (Clarium Capital)18110The Floor Trader: Yra Harris (Praxis Trading)19911The Pioneer: Jim Rogers21712The Commodity Specialist: Dwight Anderson (Ospraie Management)24113The Stock Operator: Scott Bessent (Bessent Capital)26914The Emerging Market Specialist: Marko Dimitrijevic (Everest Capital)28915The Fixed Income Specialists: David Gorton and Rob Standing (London Diversified Fund Management)30916The Currency Specialist: Anonymous325Conclusion341Appendix AWhy Global Macro Is the Way to Go343Appendix BA Note to Investors about Global Macro351Acknowledgments354Bibliography357Index361
\ From the Publisher"The managers featured in Drobny's book use various strategies, as evidenced by the panoply of securities mentioned, from African stocks to Icelandic housing bonds. Drobny stresses the importance of diversification in picking global-macro managers, adding, "You can't rely on one man."….Other managers featured in Drobny's book include Peter Thiel, who runs Clarium Capital Management….Christian Siva-Jothy, former head of proprietary trading at Goldman Sachs, and Jim Leitner of Falcon Management. In the book, Leitner offers this advice to managers: "If you read about an oil discovery, start thinking about how to develop it into a trade. The idea is to do as much research as you can just reading and thinking about anything in the world before reaching out to your network."….The key to thriving in global macro? Plenty of smarts for starters. And "humility and flexibility," Drobny says. "You have to be flexible enough to cut your positions when what you firmly believe in is not working for you." This year, global macro managers did great in the January-April period, and didn't do great in May and June, when equities and emerging markets took a big hit…..even for sophisticated players in the global-macro game, it sometimes pays to just sit on the sidelines." (Barron's)\ "It's a fantastic book, both in content and execution." (Bloomberg News)\ "Steven Drobny has been able to do something that few others have, especially in the media: He got hedge fund managers to share their trade secrets." (InstitutionalInvestor.com)\ "...useful for anyone who has entrusted their money to funds operating in the sector...an insight into the way in which some of the best performing global macro managers think about the world they invest in and how they have amassed their fortunes." —Financial Times, (Los Angeles Times, June 4, 2006)\ "[Steven Drobny] uses this access to present a series of fascinating interviews with more than a dozen managers representing a broad spectrum of investment thinking." (Financial Times)\ "a good start in understanding what the new global micro manager is all about." (Lipper HedgeWorld)\ "Couldn't come at a more appropriate time…sheds more light than ever on the minds behind the largest global macro funds…reveals the intricacies of thinking like a hedge fund manager." (Forbes)\ "Drobny has a Rolodex that's the Wall Street equivalent of Wilt Chamberlain's little black book…he has used its power to help craft the absorbing Inside the House of Money. Think Market Wizards – only full of guys who aren't either dead or irrelevant." (Trader Monthly)\ "For the investor, the trading strategies described in the interviews are chock-a-block with detail, and can serve as a starting point toward navigating hedge funds… more interesting are the stories of how these traders got where they are today… goes a long way toward enlightening those who aspire to enter." (Financial World Magazine)\ "...eye opener..." (NYSSA)\ "...must read..." (Futures Magazine)\ "...engaging..." (Active Trader)\ "written an intelligent analysis of the current hedge fund climate" (Pensions World, September 2006)\ "Corporate finance managers are taking the message of the book on board." (CFO Europe, September 2006)\ \ \
