Efficiently Inefficient : : How Smart Money Invests and Market Prices Are Determined / / Lasse Heje Pedersen.

• Superior document: Title is part of eBook package: De Gruyter Princeton University Press Complete eBook-Package 2014-2015
• VerfasserIn: Pedersen, Lasse Heje,
• Place / Publishing House: Princeton, NJ : : Princeton University Press, , [2015]; ©2015
• Year of Publication: 2015
• Edition: Course Book
• Language: English
• Physical Description: 1 online resource (368 p.) :; 65 line illus. 16 tables.

Efficiently Inefficient describes the key trading strategies used by hedge funds and demystifies the secret world of active investing. Leading financial economist Lasse Heje Pedersen combines the latest research with real-world examples and interviews with top hedge fund managers to show how certain trading strategies make money-and why they sometimes don't.Pedersen views markets as neither perfectly efficient nor completely inefficient. Rather, they are inefficient enough that money managers can be compensated for their costs through the profits of their trading strategies and efficient enough that the profits after costs do not encourage additional active investing. Understanding how to trade in this efficiently inefficient market provides a new, engaging way to learn finance. Pedersen analyzes how the market price of stocks and bonds can differ from the model price, leading to new perspectives on the relationship between trading results and finance theory. He explores several different areas in depth-fundamental tools for investment management, equity strategies, macro strategies, and arbitrage strategies-and he looks at such diverse topics as portfolio choice, risk management, equity valuation, and yield curve logic. The book's strategies are illuminated further by interviews with leading hedge fund managers: Lee Ainslie, Cliff Asness, Jim Chanos, Ken Griffin, David Harding, John Paulson, Myron Scholes, and George Soros.Efficiently Inefficient effectively demonstrates how financial markets really work.Free problem sets are available online at http://www.lhpedersen.com

Table of Contents

Frontmatter -- Contents -- The Main Themes in Three Simple Tables -- Preface -- Acknowledgments -- About the Author -- Introduction -- Part I. Active Investment -- Chapter 1. Understanding Hedge Funds and Other Smart Money -- Chapter 2. Evaluating Trading Strategies: Performance Measures -- Chapter 3. Finding and Backtesting Strategies: Profiting in Efficiently Inefficient Markets -- Chapter 4. Portfolio Construction and Risk Management -- Chapter 5. Trading and Financing a Strategy: Market and Funding Liquidity -- Part II. Equity Strategies -- Chapter 6. Introduction to Equity Valuation and Investing -- Chapter 7. Discretionary Equity Investing -- Chapter 8. Dedicated Short Bias -- Chapter 9. Quantitative Equity Investing -- Part III. Asset Allocation and Macro Strategies -- Chapter 10. Introduction to Asset Allocation: The Returns to the Major Asset Classes -- Chapter 11. Global Macro Investing -- Chapter 12 Managed Futures: Trend-Following Investing -- Part IV. Arbitrage Strategies -- Chapter 13. Introduction to Arbitrage Pricing and Trading -- Chapter 14. Fixed-Income Arbitrage -- Chapter 15. Convertible Bond Arbitrage -- Chapter 16. Event-Driven Investments -- References -- Index