EfficientlyInefficient

Efficiently Inefficient is a book that sheds light on the secret world of active investing by describing the key trading strategies used by hedge funds. It is written by financial economist Lasse Heje Pedersen, who combines the latest research with real-world examples and interviews with top hedge fund managers to explain how certain trading strategies make money and why they sometimes do not.

Pedersen argues that markets are neither perfectly efficient nor completely inefficient; they are inefficient enough that money managers can be compensated for their costs through the profits of their trading strategies, but efficient enough that the profits after costs do not encourage additional active investing. By understanding how to trade in this efficiently inefficient market, readers can learn new and engaging ways to approach finance.

Pedersen analyzes how the market price of stocks and bonds can differ from the model price, leading to new perspectives on the relationship between trading results and finance theory. He explores several different areas in depth, including fundamental tools for investment management, equity strategies, macro strategies, and arbitrage strategies. He also examines topics such as portfolio choice, risk management, equity valuation, and yield curve logic.

The book’s strategies are illuminated further by interviews with leading hedge fund managers, providing practical examples of how these strategies are put into practice. The managers interviewed include Lee Ainslie, Cliff Asness, Jim Chanos, Ken Griffin, David Harding, John Paulson, Myron Scholes, and George Soros.

Overall, Efficiently Inefficient effectively demonstrates how financial markets really work and provides valuable insights for anyone interested in active investing.

作者简介

LasseHejePedersenisafinanceprofessoratCopenhagenBusinessSchoolandNewYorkUniversity’sSternSchoolofBusiness,andaprincipalatAQRCapitalManagement.Adistinguishedfinancialeconomist,hehaswonanumberofawards,notablytheBernácerPrize,awardedtoEuropeaneconomistsunderfortywhohavemadeoutstandingcontributionsinmacroeconomicsandfinance.