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Book Review : Hedge Fund Market Wizards

Jack Schwager is very well known for his books on top traders/investors in the Wizard Series:

It will be no exaggeration to say that many people took up full time trading/investing as a vocation after reading his books.

In his book, Hedge Fund Market Wizards,  the author interviews fifteen Hedge Fund Managers who typically run portfolios worth Billions of $.

After reading some of the interviews,I got a feeling similar to what Nastase said about tennis legend Bjorn Borg: “We’re playing tennis , he’s playing something else”

Take for example-the concept of risk.As investors in stocks, we feel we have diversified company/sector risk by having a portfolio of 30 odd stocks

For some of the fund managers the concept of risk and how to manage it is very much different.

For example, for Ray Dalio, he manages risk by having 100+ uncorrelated assets…these assets range from equities, debt, currencies, spreads etc.

Each interview has lots of nuggets of information and one is simply taken aback by the sheer variety of trading/investing styles and the large amounts of money involved.

Some takeaways I found particularly useful :

  • There are a million ways to make money in the markets.Use an approach which suits your personality/temperament/style
  • Do more of what works for you and less of what doesn’t
  • Position Size can be more important than the Entry Price

The author ends with 40 Market Wizard Lessons which is the summation of his experiences of interviewing some of the best fund managers in the world.

This Book is strongly recommended.

 

 

One reply on “Book Review : Hedge Fund Market Wizards”

thanks … just ordered.
Need little more favor if you can recommend best book one should read to develop solid understanding on equity/asset valuation. and also something to develop better understanding on credit/commodity cycles (macros) and their co-relations.

thanks in advance

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