Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined

Description

Financial market behavior and key trading strategies-illuminated by interviews with top hedge fund experts Efficiently Inefficient describes the key trading strategies used by hedge funds and demystifies the secret world of active investing. Leading financial economist Lasse Heje Pedersen combines the latest research with real-world examples to show how certain tactics make money-and why they sometimes don't. He explores equity strategies, macro strategies, and arbitrage strategies, and fundamental tools for portfolio choice, risk management, equity valuation, and yield curve trading. The book also features interviews with leading hedge fund managers: Lee Ainslie, Cliff Asness, Jim Chanos, Ken Griffin, David Harding, John Paulson, Myron Scholes, and George Soros. Efficiently Inefficient reveals how financial markets really work.

Lasse Heje Pedersen is a finance professor at Copenhagen Business School and New York University's Stern School of Business, and a principal at AQR Capital Management.

"Encyclopedic in its cataloging of active management strategies and authoritative in its analysis of the practical issues of their implementation."-Martin S. Fridson, Financial Analysts Journal "This valuable and intriguing book provides a contemporary survey of investments across a wide spectrum of asset classes and strategies. Combining a wonderful narrative with a rigorous analytical structure, Efficiently Inefficient serves the needs of students, serious investors, and professionals."-Gary P. Brinson, CFA, GP Brinson Investments "For a book on investments, Efficiently Inefficient sets a completely different and higher standard."-Darrell Duffie, Stanford University "Efficiently Inefficient is a truly modern and masterful introduction to how finance will be studied and practiced in the twenty-first century."-Andrei Shleifer, Harvard University "A tour-de-force combination of original research and provocative interviews with hedge fund managers."-Laurence B. Siegel, CFA Institute Research Foundation