Product Description

This updated paperback edition of 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. Now with new commentary, author, Steve Drobny takes you even further into the hedge fund industry. He demystifies how these star traders make billions for their well-heeled investors, revealing their theories, strategies and approaches to markets. Whereas some still maintain that rationality permeates financial markets, Drobny captures a different dimension, showing how the unquantifiable human forces of emotion and intuition are also at play. Along the way, readers get an inside look at firsthand trading experiences through some of the major world financial crises of the last few decades including tragedies such as September 11th. 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 how greed, fear, and the human forces of emotion drive world markets.

Product Details

• Amazon Sales Rank: #51646 in Books
• Published on: 2009-01-09
• Original language: English
• Number of items: 1
• Binding: Paperback
• 432 pages

Features

• ISBN13: 9780470379097
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.
• Click here to view our Condition Guide and Shipping Prices

From the Back Cover

"Loved . . . [the] book—it's on my nightstand!"
—Bill Gross, Managing Director, PIMCO

"What a wonderful way to get into a macro trader's mind! I am so glad that this book exists."
—Nassim Nicholas Taleb, bestselling author of Black Swan

"We learn from these interviews of successful global macro investors that they share a style of thinking: they consider a strikingly broad list of factors influencing markets, they are exquisitely alert to nuances of timing and place in history, and, perhaps most fundamentally, they seem to be thinking along broadly inductive rather than deductive lines."
—Prof. Robert J. Shiller, Cowles Foundation for Research in Economics, International Center for Finance, Yale University, and author of Irrational Exuberance

"The ruminations of supposedly hush-hush hedge fund operators are richly illuminating."
—The New York Times

"Useful for anyone who has entrusted their money to funds operating in the sector."
—Financial Times

"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."
—Institutional Investor

"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

About the Author

Steven Drobny is cofounder and partner of Drobny Global Advisors (DGA), an international macroeconomic research and advisory firm that counts many of the leading global hedge funds as clients. Prior to starting DGA, Drobny worked for Deutsche Bank's Hedge Fund Group in London, Singapore, and Zurich. Drobny holds a master's degree from the London School of Economics and Political Science and a bachelor's degree from Bucknell University. Please visit www.insidethehouseofmoney.com for more information on Drobny, DGA, and this book.

Customer Reviews

Very Good Hedge Fund Overview on Macro Managers
Excellent book that gives the reader a basic understanding of what is a Global Macro Hedge Fund Manager. Written in English versus "finance terms" it has a wealth of information for both veterans and novices in the Hedge Fund space. It is a quick read that leaves you more knowledgeable at the end. I enjoyed reading the interviews with the hedge fund managers that normally never open up their world to the public.

Useful and practical
This book is a little tough to take as a read-through in one sitting. Not because it is so murky, but because so many of these global macro players exhibit so much self similarity that author Steve Drobny has a hard time making each interview fresh.

But the big take-away from the book is that like the term "hedge fund" is detached from its original definition and no longer has any meaning, so too with "global macro." While there is a lot of self-similarity (as stated above) he value is in the distinctions and the places where these traders are operating (both physically and market segments/opportunity sets).

This is a well written, combination of interview and narrative that is an order or magnitude above the "gee whiz" subservient tone of the "Market Wizards" books. Still, for me the nagging question remains that many of these traders are not so much as insightful but lucky, as any population of random coin flippers will still have a handful of serial winners at the end. Therefore, the most valuable interviews were with those guys who talked about their mistakes in detail, and why they made them.

Few talked of how they raised their AUM, which for me is the big secret.

All in all, worth reading, but for those with their head in the game or decades of experience only marginal utility.

Master's of the Universe
I thought I would lose interest in this book as it is a Q and A Interview style rather than a narrative style. However the book captured my interest from the very first profile. It was a great mix of trading philosophy, how they got into global macro investing, and their perspective on their world view. It was fascinating to see the intellectual challenge that global macro investing presents. The breadth of knowledge the profiled traders learn and use covers history, finance, economics, politics, psychology and many other areas. In addition the Steven Drobny's questions lead to answers that are contrary to our conventional view of the Master's of the Universe: they know they will make mistakes and tailor their approach to be ready for it and learn from it. My favorite chapters were the ones on Leitner, Thiel, Anderson, and Dimitrijevic. The last two profiles were weaker compared to the others but I still gave the book five stars considering I started out with a negative view of the book based on narrative style.