Product Description

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. Author Steven Drobny demystifies how these star traders make billions for well–heeled investors, revealing their theories, strategies and approaches to markets. Drobny, cofounder of Drobny Global Advisors, an international macroeconomic research and advisory firm, has tapped into his network and beyond in order assemble this collection of thirteen interviews with the industry′s best minds. Along the way, you′ll get an inside look at firsthand trading experiences through some of the major world financial crises of the last few decades. 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 the complexities at stake in world financial markets.

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

Product Details

• Amazon Sales Rank: #88754 in Books
• Published on: 2006-05-19
• Released on: 2006-05-10
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 384 pages

Review
"The managers featured in Drobny′s book use various strategies, as evidenced by the panoply of securities mentioned, from African stocks to Icelandic housing bonds. Drobny stresses the importance of diversification in picking global–macro managers, adding, "You can′t rely on one man."….Other managers featured in Drobny′s book include Peter Thiel, who runs Clarium Capital Management….Christian Siva–Jothy, former head of proprietary trading at Goldman Sachs, and Jim Leitner of Falcon Management. In the book, Leitner offers this advice to managers: "If you read about an oil discovery, start thinking about how to develop it into a trade. The idea is to do as much research as you can just reading and thinking about anything in the world before reaching out to your network."….The key to thriving in global macro? Plenty of smarts for starters. And "humility and flexibility," Drobny says. "You have to be flexible enough to cut your positions when what you firmly believe in is not working for you." This year, global macro managers did great in the January–April period, and didn′t do great in May and June, when equities and emerging markets took a big hit…..even for sophisticated players in the global–macro game, it sometimes pays to just sit on the sidelines." (Barron′s)

"It′s a fantastic book, both in content and execution." (Bloomberg News)

"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." (InstitutionalInvestor.com)

"...useful for anyone who has entrusted their money to funds operating in the sector...an insight into the way in which some of the best performing global macro managers think about the world they invest in and how they have amassed their fortunes." —Financial Times, (Los Angeles Times, June 4, 2006)

"[Steven Drobny] uses this access to present a series of fascinating interviews with more than a dozen managers representing a broad spectrum of investment thinking." (Financial Times)

"a good start in understanding what the new global micro manager is all about." (Lipper HedgeWorld)

"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)

"Drobny has a Rolodex that′s the Wall Street equivalent of Wilt Chamberlain′s little black book…he has used its power to help craft the absorbing Inside the House of Money. Think Market Wizards – only full of guys who aren′t either dead or irrelevant." (Trader Monthly)

"For the investor, the trading strategies described in the interviews are chock–a–block with detail, and can serve as a starting point toward navigating hedge funds… more interesting are the stories of how these traders got where they are today… goes a long way toward enlightening those who aspire to enter." (Financial World Magazine)

"...eye opener..." (NYSSA)

"...must read..." (Futures Magazine)

"...engaging..." (Active Trader)

"written an intelligent analysis of the current hedge fund climate" (Pensions World, September 2006)

"Corporate finance managers are taking the message of the book on board." (CFO Europe, September 2006)

Review
"...makes an interesting read..." (Money Week, June 2006)

"...eye opener..." (NYSSA, July 2006)

"...must read..." (Futures Magazine Group, July 2006)

"...engaging..."  (Active Traider, July 2006)

"written an intelligent analysis of the current hedge fund climate" (Pensions World, September 2006)

"Corporate finance managers are taking the message of the book on board." (CFO Europe, September 2006)

From the Inside Flap
In today′s difficult investment environment, where geopolitical and social instability compound an already challenging search for higher returns, hedge funds have outperformed. As a result, assets under management have exploded and top investment talent has migrated over to hedge funds. Amidst the growth and evolution of the business, one strategy—global macro—has remained true to its original mandate of absolute return investing, which seeks outsized returns from investments anywhere in the world, in any asset class, and in any instrument.

Although successful money managers often have a reputation for being reluctant to discuss their market views and trading strategies, Inside the House of Money opens the door to the typically opaque world of hedge funds—particularly global macro investing—and offers a rare glimpse into a high–intensity environment where enormous stakes are a part of everyday life. As cofounder and partner of Drobny Global Advisors—an international macroeconomic research and advisory firm—author Steven Drobny has access to a broad selection of today′s top global macro hedge fund managers. Through detailed interviews with more than a dozen of these individuals, Drobny provides you with an inside look at how these money managers view world markets and offers subtle insights into how they make money.

First, you will receive an introduction to global macro from a professional investor′s perspective. Then, you will discover how some key historical events have shaped this field. You will also learn how future events, such as increased competition and specialization, are pushing today′s global macro manager into the realm of global micro investing. With this information in hand, you′ll go Inside the House of Money through a collection of in–depth interviews with a variety of money managers, each with a unique perspective and approach to global markets, including:

• The Family Office Manager: Jim Leitner (Falcon Management)
• The Prop Trader: Christian Siva–Jothy (SemperMacro)
• The Treasurer: Dr. John Porter (Barclays Capital)
• The Central Banker: Dr. Sushil Wadhwani (Wadhwani Asset Management)
• The Dot–Commer: Peter Thiel (Clarium Capital Management)
• The Pioneer: Jim Rogers
• The Commodity Specialist: Dwight Anderson (Ospraie Management)
• The Emerging Market Specialist: Marko Dimitrijevic (Everest Capital)
• And others

Filled with in–depth insight and real–world experiences of top hedge fund traders, Inside the House of Money reveals how the best minds in the business identify and profit from opportunities in every corner of the globe.

Customer Reviews

Worth a Read, but Not in the Same League as 'Market Wizards'
I looked forward to reading this book, having recently reread both Market Wizard books. The first interview with Jim Leitner was of the same calibre of anything that was in Market Wizards. Leitner is a big player, and he gave a surprising amount of detail of his investment approach. There is undoubtedly much more to glean from the interview if one was to re-read it.

The rest of the interviews were average. The fundamental problem is that Drobny did not get interviews with with either the key guys behind the long-standing global macro funds, such as Tudor, Caxton, Moore Cap, or with the 'new' players such as Citadel, Brevan Howard or Renaissance. In fact, the absence of the latter fund or any other quant/systematic funds highlights how Drobny misses the cutting edge of global macro in the new millennium - that is, the rise of quant. As a result, reading the book, it already feels dated. The final interview with the currency specialist was particularly poor, and provided little other than an insight into the life of a seemingly successful prop trader.

Despite my somewhat negative tone, I do think that the interview with Leitner alone is worth getting book. The other reason is the reminder of how good Keynes was as one of the first global macro traders. Might be time to give Skidelsky's biography of Keynes another read.

Rare insight on traders' thinking
I find Steve's book very insightful; it offers a perspective into this often misunderstood industry by producing a series of interviews with hedge fund managers. This is a must-read for all the big ego wannabe's and "me-too" traders and investors in this ultra competitive market. Annually there must be 100s of hedge funds looking for money to start new funds: few survive just, like in any other business. As an investor, this book will give you some ammunition in finding those who will. As a trader or spectator this book will give you some idea of how greed, intelligence and luck make a great money machine.

The New Market Wizards
I have probably read almost every trading book out there over the years. As a prop trader and hedge fund manager, I found this book extremely well written and insightful for anyone interested in the industry. The managers in the book are the new breed of some of the best in the business out there. Its a great compilation of macro traders each with their own principal specialty. Its a great book for anyone interested in the business.