I mentioned the other day that I had started reading Hedge Fund Wizards and I have to admit it is a little flat. Whislt, I am only part way through I have noticed a few things. Firstly, Schwager seems to have fallen into the hedge fund myth. The forward to the book gives the impression that hedge funds are all conquering investment vehicles and that those who run them are investing demi gods.
Unfortunately, the reality is far from the truth. Hedge funds by and large are run for the managers of the funds not the clients. I have written extensively about this and simple search of the blog using the word hedge brings up all the relevant pieces.
Secondly, you get the impression that hedge fund investing is investing by committee, an approach that is far removed from the world of the everyday investor. Due to this book lacks the resonance of both Market Wizards and New Markets Wizards where the tales of individual traders come to the fore.
Whilst, the book contains some names I had not heard of it does have the likes of Ray Dalio the eccentric head of Bridgewater Capital the interview doesn’t really contain anything new or insightful.
The question is – is the book worth the $22.57 I paid for the Kindle version and my reserved answer is ….sortof. You may get one or two things from it and it may pass the time in the smallest room in the house but don’t expect anything new.