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.



Linkfest: June 21, 2017

Some stuff I am reading today morning:

Investors dump defaulter stocks (Mint)

How Basant Maheshwari made his millions (ET)

How to uncover company secrets in an Annual Report (ET)

India is about to upend the global beef trade (Bloomberg)

Porinju launches Alternate Investment Fund (BL)

Lifecell: India’s largest stemcell bank (FE)

How Buffett played Amazon (DR)

Strategies to protect your portfolio (Meb Faber)

Ether is the digital currency of the moment (NYTimes)

UK approaching ‘Tipping Point’ (Soros)

Linkfest: June 20, 2017

Some stuff I am reading today morning:

IHH Healthcare seals deal for Fortis, SRL (Mint)

Who killed the Chit Fund? (ET)

Lockheed Martin and Tata to make fighter jets in India (Quint)

Who rules the Indian skies? (Quint)

Advanced Enzymes confident of growth (BL)

H1 B Visa-What is means for tech companies (Enterprise)

Do not talk about your stocks publicly (Safal Niveshak)

A professional stumbler (Seth Godin)

Research : Strategic timing of Earnings News (AA)

Should your company be profitable? (A VC)