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Create Your Own ETF Hedge Fund by David Fry
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Create Your Own ETF Hedge Fund [Hardback]

A Do it Yourself ETF Strategy for Private Wealth Management

by David Fry
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Description of Create Your Own ETF Hedge Fund

Many investors are intrigued by the profit potential of today's hedge funds, but most feel like they're on the outside looking in, due to the high investment requirements and complexity of these vehicles. Create Your Own ETF Hedge Fund allows you to break down these barriers and effectively operate within this environment.

By focusing on the essential approaches of global macro long/short and aggressive growth, this book will help you create a fund that can take advantage of both bullish and bearish conditions across the globe.

Title Information

ISBN:
9780470138953
Pages:
334 pages
Format:
Hardback
Product Code:
249739
Publisher:
John Wiley & Sons Ltd
Published:
05/02/2008
Edition:
illustrated edition

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About David Fry

David H. Fry is founder of ETF Digest, a leading newsletter web site (www.etfdigest.com) for active traders and investors involved with ETFs. He founded ETF Digest in 2001 and was among the very first to see the need for a publication that provided extensive information and advice on ETF investing.

Fry has devoted over thirty years to the business of trading and portfolio management. His registration as an arbitrator with both the National Association of Securities Dealers(NASD) and the National Futures Association (NFA) attests to his extensive experience and spotless compliance record.

Contents of Create Your Own ETF Hedge Fund

Acknowledgments
About the Author
Introduction

Part One. Contemporary Investment Conditions

1. Hobson's Choice
Current Situation: The Captive Client
How the Investment Business Changed
The Age of the DIY Investor
If You Can't Beat 'Em, Join 'Em
Bad Apples and Unethical Practices
High Pressure Environment
The Regulators Crackdown
The Mother of All Mutual Fund Scandals
But Wait, There's More Potential Scandal Ahead
Client Rumblings and Grumblings
I Still Want Someone Else To Do It
Reports of My Death Have Been Greatly Exaggerated
Future Area of Growth: Unified Accounts
The Future for Financial Advisors Never Brighter...Maybe
Two Body Blows to Wall Street Fees
Conclusion

2. ETFs - The New Investment of Choice
DIY Investors Take Charge
What Took ETFs So Long To Catch On?
Indexing versus Active Management
ETFs and Indexing
The ETF Tsunami
Current Choices
New Quantitative Indexes
International ETFs
Inverse ETFs
Ultra, Leveraged Short, or Long ETFs
Commodity and Currency Etfs
Actively Managed ETFs?
With Growth Comes Other Problems
A Disruptive Technology Indeed!

3. The Rise of Hedge Funds
What We Really Mean By Hedge Fund
Hot New Sector: Private Equity
Growth of Hedge Funds
Who Invests In These Complex Strategies?
Why Invest In Hedge Funds Anyway?
But Can Retail Investors Participate?
Hedge Fund Disasters
To Regulate or Not
Hedge Funds Are Here To Stay

4. A Convergence Story
Mutual Funds, ETFs, and Hedge Funds
Mutual Funds Adopting Some Hedge Fund Strategies
Alternative Investment Strategies in Hedge Funds
Rydex Investments Leads a Big Change
PowerShares Actively Traded ETF
PowerShares Private Equity ETF
Commodity ETFs Direct
Currency ETFs Direct
Inverse ETFs Direct
New Margin Rules
The Zero Commission
Convergence Well Underway

5. The Bullish Bias Gets a Makeover
Other Contributing Forces
Commissions Out, Fees In
Recurring Fees
The Greenspan and Bernanke Put
Money Supply Shenanigans
Excess Liquidity and Stock Buybacks
I'm Forever Blowing Bubbles.Bye Bye Glass-Steagall."Da Boyz" and Primary Dealers Merge
Does the Fed or Treasury Manipulate Markets?
Time to Connect the Dots
The New Robber Barons
Two Jokers in the Deck
What Bears Are Up Against

Part Two. Strategies

6. Market Neutral
The Northwest Quadrant
Even Here, Risks Remain
ETFs and Market Neutral Strategies
Alpha Strategies
Market Neutral Mutual Funds
Conclusion

7. Global Macro
LTCM Blows Up
Gunslingers
Think Global, Invest Global
Trade Global
So You Wanna Be a Gunslinger Too?
Conclusion

8. Doing It Their Way.Selected "Trader" Profiles
Selected "Stock Pickers" Profiles
Selected "Distressed Securities" Profiles
Selected "Quantitative" Profiles
Other Famous Hedge Fund Practitioners
Insider Trading Building Performance?
So if it's a Game for the Big Boys, How Can We Play?

9. Trading...Do I Have To?
One True Thing
Market Timing Myths and Realities
The Lazy or Passive Investor: No Single Strategy Always Performs Best
The Lazy Hedge Fund Investor: The Do-Nothing Crowd
Merrill and Goldman Try To Shake Things Up: Can Passive Indexes Destroy Fees?
Day Trading: Frenetic and Intense
Shorting Explained: To Go North, Head South
Quantitative Trading: Reserved for the Left Brain Crowd
Multistrategy: All Things to All People
Conclusion

Part Three. Hedge Funds for the Rest of Us

10. Lower Risk Global Macro Long/Short Strategies
The ETF Digest Methodology
Overwhelmed
Fast Forward 35 Years
Trend Following
Risk Management
The Two-Thirds Objective
Finding Your Sacred Cows
ETFs Provide the Tools for Implementing Global Macro Long/Short Strategies
The Trick Is Putting Them Together

11. Constructing Your Own ETF Hedge Fund
Typical Questionnaire
Long-Term Investor or Short-Term Trader
Awash in ETF Choices
Performance Myths and Realities of Style.One World Market
True Diversification
Shorting Essentials
Portfolio Reallocation
Actively Managed ETFs and Mutual Fund Posers
Conclusion

12. ETF Hedge Fund Portfolios
Long-Term or Short-Term Approach
Aggressive Growth
Growth
Growth and Income
Dave's Special Portfolio
ETF Substitutes
Conclusion

13. Tools and Resources
Where to Get the Help You Need
Online Tools
Important Tools I Like
Market Information Resources
Conclusion

14. Eight Steps To Building Your ETF Hedge Fund
Step 1. Define Yourself
Step 2. Develop Your Hedge Fund Strategy
Step 3. Use ETFs as the Primary Tool
Step 4. Using Mutual Funds as an Alternate Vehicle
Step 5. Get Help, Even if You're a DIY
Step 6. If You Want To Use a Financial Advisor, Find the Right One
Step 7. DIYs Need an Online Broker
Step 8. Find the Support Tools You Need

Conclusion
Index


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