Includes bibliographical references and index.

Preface -- Acknowledgements -- Introduction: major themes and organization of the book -- Introduction to hedge funds -- What is a hedge fund? -- Regulation of hedge funds -- Hedge fund organization -- Hedge fund service providers -- Hedge fund toolkit -- Short selling, and leverage -- Derivatives : financial weapons of mass destruction? -- History and overview of the hedge fund industry -- History of hedge funds -- Hedge funds, shadow banking and systemic risk -- Key events in the development of hedge funds : long term capital management and the credit and liquidity crisis -- Hedge fund performance : mounting criticism and changing benchmarks -- Mounting criticism of the hedge fund performance -- Is smaller better in hedge funds? -- Statistical measures of performance -- Aggregate measures of hedge fund performance -- Hedge fund returns from the investors' viewpoint -- Hedge fund strategies -- Overview of hedge fund strategies -- Equity hedge strategies -- Event driven strategies -- Relative value strategies -- Global macro and commodity trading advisor strategies -- Hedge fund of funds -- Hedge funds and investment portfolios -- Modern portfolio theory and efficient market hypothesis -- Behavioral critique of efficient market hypothesis -- Institutionalization of hedge funds -- Hedge funds and retail investors -- Managing hedge fund portfolios -- Manager selection and due diligence -- Risk management -- Recent hedge fund controversies -- Conclusion -- Appendix A: Model due diligence questionnaire for hedge fund investors -- Appendix B: Overview of major hedge fund replication products -- Appendix C: Internet resources for hedge fund news and research -- Appendix D: Government agencies that oversee hedge funds -- Glossary -- Bibliography -- Index.