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Praise for HedgeHogging
"Barton Biggs writes about markets with greater style, clarity, and insight than any other observer of the Wall Street scene. His new book, Hedgehogging, entertains immensely even as it provides countless valuable lessons regarding hedge funds and the investment world they inhabit."
—David F. Swensen, Chief Investment Officer, Yale University
"Since the glory days of the tech bubble, investing has become a perilous enterprise. Not the least for those running money in the proliferating hedge fund business. In Hedgehogging, Biggs offers a fascinating glimpse behind the scenes at the personalities and egos making decisions about the enormous sums being dumped en masse into these funds. This book is great. It's full of personal anecdotes and critical insights from an insider's insider. You should not even consider giving money to anyone on Wall Street ever again until you've read this book."
—Addison Wiggin, Agora Financial LLC, author of the New York Times bestseller, The Demise of the Dollar and coauthor of Empire of Debt
Rare is the opportunity to chat with a legendary figure and hear the unvarnished truth about what really goes on behind the scenes. Hedgehogging represents just such an opportunity, allowing you to step inside the world of Wall Street with Barton Biggs as he discusses investing in general, hedge funds in particular, and how he has learned to find and profit from the best moneymaking opportunities in an eat-what-you-kill, cutthroat investment world.
400 pages, Paperback
First published January 3, 2005
113 people are currently reading
1780 people want to read
About the author
Barton Biggs
10 books35 followersBarton Biggs was a well-known figure in the investment world. Before running multi-billion-dollar hedge fund Traxis Partners, Biggs spent three decades as a senior partner at Morgan Stanley. Biggs was selected 10 times for Institutional Investor’s “All-America Research Team,” and made over 300 television appearances before he passed away in 2012.
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Displaying 1 - 30 of 79 reviews
November 28, 2009
Funny, wise, and scary.
Hedgehogging is effectively a series of fictionalised anecdotal recollections anecdotes strung together into several topical essays. The material is well-organised and non-repetitive, the writing is light and witty, yet its contents thoughtful and well worth going over again. Biggs was there at the start -- he worked as an analyst for Alfred Winslow Jones -- then spent years at Morgan Stanley and headed its investment management division, and is still in the game as a partner at his own hedge fund Traxis. So these thoughts really represent a lifetime in the industry. Yet what I enjoyed is that its not just about how to manage money -- it's about people in the industry, sights along the way, the emotions experienced; it's almost like a nice witty tour guide you'd read before making your first trip to wherever.
On first read, I liked these points he made, in no particular order:
1). *Now* (emphasis Biggs) is always the hardest time to invest.
2). He claims to be agnostic over value vs growth, though biased to value -- the only time growth smashed value in terms of outperformance was 98-99.
3). A great chapter of caricatures of managers -- my favourite is of this successful fund manager (hedgehogs, he calls them) who's always extremely calm, rational and genial; they're having a golf game and the guy is having a bad day, hits two balls into the water -- and without warning, suddenly breaks into a completely silent rage, bashing his club on the ground, whacking it against a tree, and then tossing it far into the water. The others move on, embarassedly, and the guy joins them the next round, polite as ever, as though nothing had happened. That evening, instead of sitting around to chat, the guy goes back out to practise his drives -- Biggs wanders out to see how he's doing, and from afar, sees him hit badly, and again go through the same routine of controlled, intense rage. Biggs decides to go back in.
4). The recurrent, and colorfully elaborated, theme of how hard it is to raise money for a new fund, and how harsh investors can and will be regardless of your track record.
5). Thoughtful advice on how to manage family money, and hedge fund selection, with reference to David Swensen. The advice to look for investors -- not businessmen -- and once you have them, to stick with them.
6). If you can get 10% steady returns on your money, on average, growing capital in bull market and preserving it in bears -- that is already damned good.
7). A variety of different investment styles, in different asset classes, are described along the way.
8). A lot of clever little quotes from other writers of history, biography and poetry. The half-page conclusion, for example: "Men are wise not in proportion to their experience, but to their capacity for experience".
9). After a work week of reading research reports, almost invariably trudgingly written, one needs, on the weekend, something... else. Something that reminds one of light and life. Everyone has their own poison here, I've noticed -- blues music, history, techie stuff, Command & Conquer, sport...
10). The breadth of mind required of a good investor (biased toward his value-oriented, fundamentals driven style, I admit), again from the conclusion -- investing is much more an art than a science; intelligence, experience, diligence, a knowledge of history, an open mind, and an obsessive nature... plus intuition, imagination, flexibility, and a touch of the seeing eye...
Hedgehogging is effectively a series of fictionalised anecdotal recollections anecdotes strung together into several topical essays. The material is well-organised and non-repetitive, the writing is light and witty, yet its contents thoughtful and well worth going over again. Biggs was there at the start -- he worked as an analyst for Alfred Winslow Jones -- then spent years at Morgan Stanley and headed its investment management division, and is still in the game as a partner at his own hedge fund Traxis. So these thoughts really represent a lifetime in the industry. Yet what I enjoyed is that its not just about how to manage money -- it's about people in the industry, sights along the way, the emotions experienced; it's almost like a nice witty tour guide you'd read before making your first trip to wherever.
On first read, I liked these points he made, in no particular order:
1). *Now* (emphasis Biggs) is always the hardest time to invest.
2). He claims to be agnostic over value vs growth, though biased to value -- the only time growth smashed value in terms of outperformance was 98-99.
3). A great chapter of caricatures of managers -- my favourite is of this successful fund manager (hedgehogs, he calls them) who's always extremely calm, rational and genial; they're having a golf game and the guy is having a bad day, hits two balls into the water -- and without warning, suddenly breaks into a completely silent rage, bashing his club on the ground, whacking it against a tree, and then tossing it far into the water. The others move on, embarassedly, and the guy joins them the next round, polite as ever, as though nothing had happened. That evening, instead of sitting around to chat, the guy goes back out to practise his drives -- Biggs wanders out to see how he's doing, and from afar, sees him hit badly, and again go through the same routine of controlled, intense rage. Biggs decides to go back in.
4). The recurrent, and colorfully elaborated, theme of how hard it is to raise money for a new fund, and how harsh investors can and will be regardless of your track record.
5). Thoughtful advice on how to manage family money, and hedge fund selection, with reference to David Swensen. The advice to look for investors -- not businessmen -- and once you have them, to stick with them.
6). If you can get 10% steady returns on your money, on average, growing capital in bull market and preserving it in bears -- that is already damned good.
7). A variety of different investment styles, in different asset classes, are described along the way.
8). A lot of clever little quotes from other writers of history, biography and poetry. The half-page conclusion, for example: "Men are wise not in proportion to their experience, but to their capacity for experience".
9). After a work week of reading research reports, almost invariably trudgingly written, one needs, on the weekend, something... else. Something that reminds one of light and life. Everyone has their own poison here, I've noticed -- blues music, history, techie stuff, Command & Conquer, sport...
10). The breadth of mind required of a good investor (biased toward his value-oriented, fundamentals driven style, I admit), again from the conclusion -- investing is much more an art than a science; intelligence, experience, diligence, a knowledge of history, an open mind, and an obsessive nature... plus intuition, imagination, flexibility, and a touch of the seeing eye...
September 10, 2018
I was in a library for the first time in my adult life and saw this on a shelf among many books I've already read. I confused it with a story that goes by a similar name (Hedgehogs) that was recommended by a good friend of mine who recently moved into the money management space. This is not that book, rather it may be the Iliad of the hedge fund world--so profound that it made me wonder if the book I was supposed to read might have been about spiny mammals.
If you told me at the start that I was about to read a value investing book with the final chapter covering John Maynard Keynes, I would have picked something else to end this period of garden leave. But It only takes reading a single paragraph written by Barton Biggs to understand why this book is so beloved. The writing is enchanting, the perspective is refreshing, and Biggs' vocabulary is masterfully refined without the stuffiness that usually accompanies wealth, refinement, and a degree from Yale.
The main thing to note that's probably left out of other reviews is that Biggs slyly throws in the fact that, before he started his career in money management, he spent years trying to write the next Great American Short Story. This single factoid, if known in advance--assuming you're reading this review in advance--should convince even the staunchest opponent of financial non-fiction to give this guy a chance. It's a career reflection written by someone who had a lot to share and not much to prove.
Mr. Biggs takes a few pages to explain the history of numbers and what they symbolize. There is an amount of beauty in those few paragraphs that has not yet been realized during my elongated dive into a book named Number.
Chapter 20 is a short story involving a guy named Judson Thomas. It's a thriller ("that will make your blood turn cold"). If you're a picky reader, you will regret skipping that chapter. It'll be clear by that point that Hedgehogging is a classic, but this one also seals Biggs' place as a phenomenal writer and a kind soul.
Chapter 13 is, admittedly, somewhat of a backscratcher where the author analyzes his prediction of the DotCom bubble. However, it's an endearing example of how canny Barton Biggs was and how his making the call was not a fluke. It never feels vaguely promotional.
Memorable chapters aside, this is a deeply educational work. When you're in college or in high school or are some type of outsider trying to understand the industry better, this can help. I've found that conversations on message boards and the like easily get derailed and fixate on the wrong things. Things that don't matter in the long run and cause college students to waste time wanting something that is illusory. While these narratives are indeed dotted with stories of high society, the lifestyle is never glorified and the rainmakers never placed on much of a pedestal. It's a balanced account where industries like Private Equity and Venture Captial are cut down and the stress of being a money-manager is often in plain view.
This book was a great surprise. It helped me gain a level of respect for and understanding of an industry and a man did his part to advance it.
See this review and others on my blog
If you told me at the start that I was about to read a value investing book with the final chapter covering John Maynard Keynes, I would have picked something else to end this period of garden leave. But It only takes reading a single paragraph written by Barton Biggs to understand why this book is so beloved. The writing is enchanting, the perspective is refreshing, and Biggs' vocabulary is masterfully refined without the stuffiness that usually accompanies wealth, refinement, and a degree from Yale.
The main thing to note that's probably left out of other reviews is that Biggs slyly throws in the fact that, before he started his career in money management, he spent years trying to write the next Great American Short Story. This single factoid, if known in advance--assuming you're reading this review in advance--should convince even the staunchest opponent of financial non-fiction to give this guy a chance. It's a career reflection written by someone who had a lot to share and not much to prove.
Mr. Biggs takes a few pages to explain the history of numbers and what they symbolize. There is an amount of beauty in those few paragraphs that has not yet been realized during my elongated dive into a book named Number.
Chapter 20 is a short story involving a guy named Judson Thomas. It's a thriller ("that will make your blood turn cold"). If you're a picky reader, you will regret skipping that chapter. It'll be clear by that point that Hedgehogging is a classic, but this one also seals Biggs' place as a phenomenal writer and a kind soul.
Chapter 13 is, admittedly, somewhat of a backscratcher where the author analyzes his prediction of the DotCom bubble. However, it's an endearing example of how canny Barton Biggs was and how his making the call was not a fluke. It never feels vaguely promotional.
Memorable chapters aside, this is a deeply educational work. When you're in college or in high school or are some type of outsider trying to understand the industry better, this can help. I've found that conversations on message boards and the like easily get derailed and fixate on the wrong things. Things that don't matter in the long run and cause college students to waste time wanting something that is illusory. While these narratives are indeed dotted with stories of high society, the lifestyle is never glorified and the rainmakers never placed on much of a pedestal. It's a balanced account where industries like Private Equity and Venture Captial are cut down and the stress of being a money-manager is often in plain view.
This book was a great surprise. It helped me gain a level of respect for and understanding of an industry and a man did his part to advance it.
See this review and others on my blog
October 24, 2011
This is the second of Biggs books I've read,
He has a talent for writing, and while finance can be a boring subject to read,
he makes it interesting.
Unlike almost all other financial writers,
he is personally rich and had 40 years experience in the trenches of money management.
This gives him a lot better perspective than reporters who merely interview people
and hear what the interviewee wants them to hear.
Here's a sample of his prose:
"Our eyes meet. Jim's are haunted and a little mad,
but who is not a little deranged on the terrace of The breakers in the spell of a perfect starlit evening with wine and money flowing like music?
...in the past he has often followed the lemmings over the proverbial cliff.
I like him, though, because in the heat of each moment, he truly believes his own bullshit and doesn't pretend to be anything other than what he is --- a stock jockey.
and describing rich women at the event:
"Wealthy divorcees and widows with artificial brightness in their unpouched eyes
and hard, chiseled faces and tucked stomachs and bottoms, work the crowd.
Are they looking for a man or a hedge fund?
They have smiles for you like cold leftovers."
He has a talent for writing, and while finance can be a boring subject to read,
he makes it interesting.
Unlike almost all other financial writers,
he is personally rich and had 40 years experience in the trenches of money management.
This gives him a lot better perspective than reporters who merely interview people
and hear what the interviewee wants them to hear.
Here's a sample of his prose:
"Our eyes meet. Jim's are haunted and a little mad,
but who is not a little deranged on the terrace of The breakers in the spell of a perfect starlit evening with wine and money flowing like music?
...in the past he has often followed the lemmings over the proverbial cliff.
I like him, though, because in the heat of each moment, he truly believes his own bullshit and doesn't pretend to be anything other than what he is --- a stock jockey.
and describing rich women at the event:
"Wealthy divorcees and widows with artificial brightness in their unpouched eyes
and hard, chiseled faces and tucked stomachs and bottoms, work the crowd.
Are they looking for a man or a hedge fund?
They have smiles for you like cold leftovers."
April 16, 2016
If you get a chance to drink with Barton Biggs, don't pass on the opportunity. This book is brimming with insights of a man who has spent his life dealing with the undulations of the stock market, mired in conversations of growth vs value stocks, and an avid reader. In a conversation-centric book, Biggs muses on portions of investment management. Often it's the tangents in the framework that are most interesting: the metamorphisis of eager young naive men to bitter greedly bastards, the social competiiveness amount families to fit in, and the emotional rollercoaster of seeking alpha.
Biggs personality is big. A friendly warm voice with practicality and a hint of poeticness. He comes across as a very practical man. Aware of the cyclical nature of his business, the randomness of market results and the humbleness to admit that very few investment managers can routinelyproduce returns that outmatch index funds. Maybe except David Swenson's Yale endowment fund.
There are some quibbles I have with the book. The last chapter on Keynes...has a passioante appeal of a reader who dives into a moving biography, but feels so out of place with the rest of the book. I feel like Biggs scratches the surface on so much material, but feels like it's missing a core philosophy or purpose.
Still there is a lot of ideas to chew on. And for an industry that is bound with all the frailities of human existence, it's one hell of a psychology book.
Biggs personality is big. A friendly warm voice with practicality and a hint of poeticness. He comes across as a very practical man. Aware of the cyclical nature of his business, the randomness of market results and the humbleness to admit that very few investment managers can routinelyproduce returns that outmatch index funds. Maybe except David Swenson's Yale endowment fund.
There are some quibbles I have with the book. The last chapter on Keynes...has a passioante appeal of a reader who dives into a moving biography, but feels so out of place with the rest of the book. I feel like Biggs scratches the surface on so much material, but feels like it's missing a core philosophy or purpose.
Still there is a lot of ideas to chew on. And for an industry that is bound with all the frailities of human existence, it's one hell of a psychology book.
December 20, 2019
This is an insightful book written by a battle-tested money manager. Nothing grandiose or innovative and to be honest, and if you have been through a decent amount of investment related books you won’t learn that much from it. But it is well written and peppered with inside anecdotes on the unorthodox personalities that populates the money management world. The author does a good job at summarizing some central principles of investing but also in finding commonalities in the people who are good (or bad) at it. A particular mention for the final chapter where he does a good job at summarizing Keynes voluminous biography.
December 21, 2020
Her atilimda yalniz olacagini bil. Eger kendini butunuyle rahat hissediyorsan yeterince yol almiyorsun. Her seyin iyi gidecegine dair o sicak duygu, bir sürünün ortasinda olmaktan kaynaklanan vucut isisidir. Yalnizca risk altinda olacak kadar ileri atildiginda buyuk oduller kazanma sansi bulursun...
February 24, 2020
Hedge Hogging
Barton Biggs
2006
A little old, but we would think that greed and fear are still valid motivators.
This book would have best been read in 2006. The 2nd best time is now. It is an interesting look at the money game – and while it will not make you rich, you might help you keep your wealth (and some sanity too!)
4+ stars
Who is Barton Biggs?
Barton Michael Biggs was a money manager whose attention to emerging markets marked him as one of the world's first and foremost global investment strategists, a position he held—after inventing it in 1985—at Morgan Stanley, where he worked as a partner for over 30 years. Wikipedia
Born: November 26, 1932, New York, New York, United States
Died: July 14, 2012, Greenwich, Connecticut, United States
Xi: Fund of funds: 1% plus 10% on top of the 2% and 20%...
>>> so if a fund made 15% what would be left to the investor, and assuming no hurdles:
>>>So slightly more than 50% of the 15%
Xii: Buy sheep, sell deer…
Chapter one: The triangle investment club dinner
6: Now 8000 hedge funds in the USA and that HF capital has exploded from 36B in 1990 to around 1 Trillion dollars today.
Chapter 2: The…still bleed red
10: 200 biggest hedge funds have 80% of the assets
>>>or 2.5% have 80%...the STAR economy
20: The point of these vignettes is that starting and managing your own hedge fund is such a personal and intense endeavour that failing can really put a dent into your life and psyche. Forever!
Chapter 3: Short-selling oil: The crude joke was on us
25: Deep analysis can get you in deep trouble
28: …well aware of the dangers of what the social psychologies call confirmatory bias, in other words the tendency to collect all the information that agrees with your position and to ignore the information that doesn’t.
Chapter 4: Short Selling is not for Sissies
>>>you can be right in the long term but take a bath while in the waiting room!
Chapter 5: The Odyssey of starting a Hedge Fund
57: Professional investing is about performance, just as professional sports is about winning.
Chapter 6: The Roadshow Grind: Blood, Sweat, Toil and Tear
Chapter 7: The Run-Up and Haunted by Remembrances and Doubt
94: Now is always the hardest time to invest.
Chapter 8: Hedgehogs come in all sizes and shapes
95: You can’t obfuscate performance numbers.
A questioning mind, the gambling instinct, and the ability to make tough decisions on inconclusive evidence are all essential characteristics.
118: Nevertheless, my somewhat supercilious point is that every investor in hedge funds should consider where the fund’s managers are in their personal motivation cycle.
Chapter 9: The Violence of Secular Market Cycles
120: Only if you are far enough ahead to be at risk do you have a chance for large rewards.
122: Secular bear: decline of at least 40%
Cyclical bear market is a fall of at least 15% but less than 40%
Chapter 10: The Battle for Investment Survival: Only Egotists or Fools try to pick tops and bottoms
143: The crowd is always wrong during market extremes
145:…VIX virtually useless in signalling tops.
Chapter 11: From one generation to another
Chapter 12: Nature’s mysticism and Groupthink stinks.
163: Nicolas Fibonacci was born in Italy in 1175
• 1202 published a book, Liber Abaci, which introduced Arabic numbers to Europe
• 1, 2, 2,3,5,8,13,21,34,55,89,144,233,….
• List of other characteristics
• Golden proportion of .618 to 1
• Greeks, Golden Mean name for .618
169: Groupthink (or maybe it should be called groupstink) is the disease that plagues every committee, and most don’t even know it.
>>>Committees should set guidelines and monitor that the guidelines are being followed and then move along!
170: ..book, called Groupthink by Irving Janis
173: But Solothink is dangerous too
>>>Perhaps we should not think?
I may have my faults but being wrong ain’t one of them ~ Jimmy Hoffa
>>>The copout?
177: Groupthink and solothink are elements to consider when organizing a group for effective decision making. It’s not easy.
Chapter 13: The Internet Bubble: I’d still rather have air-conditioning
…Swensen went on to say:
By selecting investment managers with an entrepreneurial orientation, fiduciaries improve the chances for investment success. Large, multi-product, process-driven financial services entities face the daunting hurdle of overcoming bureaucratic obstacles to creative decision making. Small independent firms with excellent people focused on a dell-defined market segment provide the highest likelihood of identifying the intelligent contrarian path necessary to achieving excellent investment results.
Chapter 14: Great Investment Managers Are Intense, Disciplined Maniacs
196: Don’t hold on blindly: Great investors cut their losses
A trend is a trend is a trend
But the question is, will it bend?
Will it alter its course?
Through some unforeseen force
And come to a premature end….?
~ Sir Alec Cairness
I have said that in my whole life, I have known no wise person over a broad subject matter area who didn’t read all the time – None zero. Now, I know all kinds of shrewd people who by staying within a narrow area can do very well without reading. But investment is a broad area. ~ Charlie Munger, 2003 Berkshire Hathaway annual meeting.
198: Investing is about glimpsing, however dimly, the ebb and flow of human events.
203: It’s not just reading but reading smart.
Chapter 15: You’re only as beloved as your most recent performance.
206: The trauma of running money is not for everyone or the trauma when you bite the dust.
Chapter 16: Once you have a fortune, how can you hang on to it?
222: Think of returns net after fees and taxes
>>> Think of returns net after fees and taxes and inflation. Inflation erodes what you can do with your money.
225: Venture capital is glamorous but risky but you can get a wonderful ride.
>>>If you know what you are doing, are prepared to roll up your sleeves and have an on call team, you can greatly mitigate the risks.
229: Select hedge funds with sceptical care
231: Don’t go hedgehogging by yourself: Funds of funds make sense
>>>but are they worth the cost? Diversification has its benefits, but they are not without drawbacks!
232: Investing in fine art: Love it for itself, not as an investment
>>>Agreed, but don’t be shocked that with some knowledge, and experience, if it does not do better than your investment portfolio – on paper!
Chapter 17: Three Investment Religions: Growth, Value and Agnostic
239: Identifying growth stocks is extremely difficult
241: Value investors love ugly companies
242: Agnostics believe this, too, shall pass
242: Growth or value: which performs better?
Chapter 18: The trouble with being big
249: Great mavericks will always go their own way
252: Patience is a virtue – but it’s so tough to practice
255: Alpha investing is a zero-sum game
258: What is the answer for the lonely soul looking for a long-term relationship with a solid investment manager?
1. go easy on the pressure
2. get someone who is ballet tested and as close to having a private investor mentality as possible
3. find a firm that is comfortable with itself and its financial status
4. go with a firm that is owned and run by investors
5.
Chapter 19: Bubbles and the true believer
260: Two types of bubbles: Bad and very bad
262: The proverbial long wave in the economy
264: The true believer: Disciple of gold
Chapter 20: Diving intervention, or inside information? A tale that will make your blood run cold.
There are strange things done ‘neath the midnight sun by the men that search for gold. The arctic trails have their secret tales that would make your blood run cold ~ Robert Service (The Cremation of Sam McGee.)
284: Te stock market is a mysterious thing, like the sea, and “there are strange things done ’neath the midnight sun by the men who search for gold….
Chapter 21: John Maynard Keynes: Economist, Hedge-fund manager and fascinating character
285: Robert Skidelsky’s three volume biography of John Maynard Keynes
The most influential economist of the 20th century
292: It was in this book that he (Keynes) described the gold standard as “a barbarous relic’ and made his famous comment that “this long run is a misleading guide to current affairs. In the long run we are all dead”
>>>>Back to the top…., note that >>> denote the reviewers thoughts!
~ Barton Biggs (Hedge Hogging)
Barton Biggs
2006
A little old, but we would think that greed and fear are still valid motivators.
This book would have best been read in 2006. The 2nd best time is now. It is an interesting look at the money game – and while it will not make you rich, you might help you keep your wealth (and some sanity too!)
4+ stars
Who is Barton Biggs?
Barton Michael Biggs was a money manager whose attention to emerging markets marked him as one of the world's first and foremost global investment strategists, a position he held—after inventing it in 1985—at Morgan Stanley, where he worked as a partner for over 30 years. Wikipedia
Born: November 26, 1932, New York, New York, United States
Died: July 14, 2012, Greenwich, Connecticut, United States
Xi: Fund of funds: 1% plus 10% on top of the 2% and 20%...
>>> so if a fund made 15% what would be left to the investor, and assuming no hurdles:
>>>So slightly more than 50% of the 15%
Xii: Buy sheep, sell deer…
Chapter one: The triangle investment club dinner
6: Now 8000 hedge funds in the USA and that HF capital has exploded from 36B in 1990 to around 1 Trillion dollars today.
Chapter 2: The…still bleed red
10: 200 biggest hedge funds have 80% of the assets
>>>or 2.5% have 80%...the STAR economy
20: The point of these vignettes is that starting and managing your own hedge fund is such a personal and intense endeavour that failing can really put a dent into your life and psyche. Forever!
Chapter 3: Short-selling oil: The crude joke was on us
25: Deep analysis can get you in deep trouble
28: …well aware of the dangers of what the social psychologies call confirmatory bias, in other words the tendency to collect all the information that agrees with your position and to ignore the information that doesn’t.
Chapter 4: Short Selling is not for Sissies
>>>you can be right in the long term but take a bath while in the waiting room!
Chapter 5: The Odyssey of starting a Hedge Fund
57: Professional investing is about performance, just as professional sports is about winning.
Chapter 6: The Roadshow Grind: Blood, Sweat, Toil and Tear
Chapter 7: The Run-Up and Haunted by Remembrances and Doubt
94: Now is always the hardest time to invest.
Chapter 8: Hedgehogs come in all sizes and shapes
95: You can’t obfuscate performance numbers.
A questioning mind, the gambling instinct, and the ability to make tough decisions on inconclusive evidence are all essential characteristics.
118: Nevertheless, my somewhat supercilious point is that every investor in hedge funds should consider where the fund’s managers are in their personal motivation cycle.
Chapter 9: The Violence of Secular Market Cycles
120: Only if you are far enough ahead to be at risk do you have a chance for large rewards.
122: Secular bear: decline of at least 40%
Cyclical bear market is a fall of at least 15% but less than 40%
Chapter 10: The Battle for Investment Survival: Only Egotists or Fools try to pick tops and bottoms
143: The crowd is always wrong during market extremes
145:…VIX virtually useless in signalling tops.
Chapter 11: From one generation to another
Chapter 12: Nature’s mysticism and Groupthink stinks.
163: Nicolas Fibonacci was born in Italy in 1175
• 1202 published a book, Liber Abaci, which introduced Arabic numbers to Europe
• 1, 2, 2,3,5,8,13,21,34,55,89,144,233,….
• List of other characteristics
• Golden proportion of .618 to 1
• Greeks, Golden Mean name for .618
169: Groupthink (or maybe it should be called groupstink) is the disease that plagues every committee, and most don’t even know it.
>>>Committees should set guidelines and monitor that the guidelines are being followed and then move along!
170: ..book, called Groupthink by Irving Janis
173: But Solothink is dangerous too
>>>Perhaps we should not think?
I may have my faults but being wrong ain’t one of them ~ Jimmy Hoffa
>>>The copout?
177: Groupthink and solothink are elements to consider when organizing a group for effective decision making. It’s not easy.
Chapter 13: The Internet Bubble: I’d still rather have air-conditioning
…Swensen went on to say:
By selecting investment managers with an entrepreneurial orientation, fiduciaries improve the chances for investment success. Large, multi-product, process-driven financial services entities face the daunting hurdle of overcoming bureaucratic obstacles to creative decision making. Small independent firms with excellent people focused on a dell-defined market segment provide the highest likelihood of identifying the intelligent contrarian path necessary to achieving excellent investment results.
Chapter 14: Great Investment Managers Are Intense, Disciplined Maniacs
196: Don’t hold on blindly: Great investors cut their losses
A trend is a trend is a trend
But the question is, will it bend?
Will it alter its course?
Through some unforeseen force
And come to a premature end….?
~ Sir Alec Cairness
I have said that in my whole life, I have known no wise person over a broad subject matter area who didn’t read all the time – None zero. Now, I know all kinds of shrewd people who by staying within a narrow area can do very well without reading. But investment is a broad area. ~ Charlie Munger, 2003 Berkshire Hathaway annual meeting.
198: Investing is about glimpsing, however dimly, the ebb and flow of human events.
203: It’s not just reading but reading smart.
Chapter 15: You’re only as beloved as your most recent performance.
206: The trauma of running money is not for everyone or the trauma when you bite the dust.
Chapter 16: Once you have a fortune, how can you hang on to it?
222: Think of returns net after fees and taxes
>>> Think of returns net after fees and taxes and inflation. Inflation erodes what you can do with your money.
225: Venture capital is glamorous but risky but you can get a wonderful ride.
>>>If you know what you are doing, are prepared to roll up your sleeves and have an on call team, you can greatly mitigate the risks.
229: Select hedge funds with sceptical care
231: Don’t go hedgehogging by yourself: Funds of funds make sense
>>>but are they worth the cost? Diversification has its benefits, but they are not without drawbacks!
232: Investing in fine art: Love it for itself, not as an investment
>>>Agreed, but don’t be shocked that with some knowledge, and experience, if it does not do better than your investment portfolio – on paper!
Chapter 17: Three Investment Religions: Growth, Value and Agnostic
239: Identifying growth stocks is extremely difficult
241: Value investors love ugly companies
242: Agnostics believe this, too, shall pass
242: Growth or value: which performs better?
Chapter 18: The trouble with being big
249: Great mavericks will always go their own way
252: Patience is a virtue – but it’s so tough to practice
255: Alpha investing is a zero-sum game
258: What is the answer for the lonely soul looking for a long-term relationship with a solid investment manager?
1. go easy on the pressure
2. get someone who is ballet tested and as close to having a private investor mentality as possible
3. find a firm that is comfortable with itself and its financial status
4. go with a firm that is owned and run by investors
5.
Chapter 19: Bubbles and the true believer
260: Two types of bubbles: Bad and very bad
262: The proverbial long wave in the economy
264: The true believer: Disciple of gold
Chapter 20: Diving intervention, or inside information? A tale that will make your blood run cold.
There are strange things done ‘neath the midnight sun by the men that search for gold. The arctic trails have their secret tales that would make your blood run cold ~ Robert Service (The Cremation of Sam McGee.)
284: Te stock market is a mysterious thing, like the sea, and “there are strange things done ’neath the midnight sun by the men who search for gold….
Chapter 21: John Maynard Keynes: Economist, Hedge-fund manager and fascinating character
285: Robert Skidelsky’s three volume biography of John Maynard Keynes
The most influential economist of the 20th century
292: It was in this book that he (Keynes) described the gold standard as “a barbarous relic’ and made his famous comment that “this long run is a misleading guide to current affairs. In the long run we are all dead”
>>>>Back to the top…., note that >>> denote the reviewers thoughts!
~ Barton Biggs (Hedge Hogging)
September 4, 2024
Need to feel uncomfortable to get the best bargains. Warm sense of everythhing going well is usually the body temperature at the centre of the herd.
It is those holds that are to cheap to sell but not attractive enough to buy that make a portfolio stale and retard performance.
More money in the markets chasing short-term returns should be a positive for long-term investors by providing opportunities. Some confuse charm, a low handicap and a bull market for investment brands. Successful managers often expand their lifestyle and build big overheads. People can over-extend themselves and then hope the business keeps performing to pay for it all. Becomes dependent on the future and short-term performance.
Ability for humans to adapt: "The doomsayers work by extrapolation; they take a trend and extend it, forgetting that the doom factor sooner or later generates a coping mechanism... you cannot extrapolate any series in which the human element intrudes; history, that is the human narrative, never follows and will always foil the scientific curve." - Barbara Tuchman.
The market can stay irrational longer than you can stay solvent.
Success inevitably breeds hubris in one form or another, and in the hedge fund business, arrogance eventually levels the exalted. Hubris leads to private jets, multiple golf clubs, homes in the south of France and Nantucket, and younger wives.
Things tend to bottom when conditions look their worst. The peak of maximum bearishness.
"It was a devastating time. I was halfway through rebuilding our home, and we were living in the small cottage. I remember waking up every night like clockwork at 3am, literally in a cold sweat, hearing the children peacefully breathing, and agonising over the portfolio. It was the worst agony I have ever experienced. It went on night after day after night. Stocks were getting destroyed. Our portfolio was dying before my eyes, yet I was also terrified of getting whipsawed. April and May were horrors. We survived, but May 1970 was a lesson I will never forget. When you are managing risk in a portfolio, you always have to remember that there is a possibility of a catastrophic outcome. Markets are prone to extremes, both up and down. In good times, we all operate under the assumption that liquidity is a constant, and that if a position goes wrong, you can expeditiously exit with only minimal damage. That spring, in the midst of tumultuous political and economic events, I learned the hard way that in a market meltdown, not only does liquidity evaporate, but prices can fall so steeply that all decisions have the potential for serious adverse consequences."
Didn't get as much money as he thought when starting a new fund. Some sure things didn't come through. Was flattered and frightened that so many friends came in.
'Tim': On his beautiful Chippendale desk sits a small plaque, which says totis porcis - the whole hog. There is also a small porcelain pig, which reads "it takes courage to be a pig." I think Stan Druckenmiller, who coined the phrase, gave him the pig. To get really big long-term returns, you have to be a pig and ride your winners. [Ride the wave to the shore. Add to your winners.] Accept volatility and concentration. Diversification is the enemy of performance. Believes running a portfolio is a solitary activity. For me it doesn't work to have partners. In the end, one mind in the dead of night has to make the buy and sell decisions. Tim keeps himself totally inaccessible to all buy a few select strategists and analysts. He speaks with other money managers and to businesspeople who are working in the real economy. He travels continually. He is a very curious, inquisitive man. He operates almost like a secret agent.
He became disenchanted with having so many analysts. He had become a manager of analysts, rather than being a stock picker and an investorm which is what he wanted to be and what he thought he was good at.
Probably the biggest intellectual problem an investor must wrestle with is the constant barrage of noise and babble. One of Taleb's majorr themes is that the wise man listens for meaning, but the fool gets only the noise.
When an investor focuses on short-term increments, he or she is observing the variability of the portfolio, not the returns - in short, being fooled by randomness.
An Australian oil man, John Masters, expressed it succinctly in one of his annaul reports: "You have to recognise that every 'out-front' maneuver is going to be lonely. But if you feel entirely comfortable, then you're not far enough ahead to do any good. That warm sense of everything going well is usually the body temperature at the centre of the herd. Only if you're far enough ahead to be at risk do you have a chance for large rewards."
Retail flows typically come at the worst times, in both directions. Dalbar study: average manager underperforms the market, and the average investor underperforms the fund by investing and redeeming at the wrong times.
It is those holds that are to cheap to sell but not attractive enough to buy that make a portfolio stale and retard performance.
Only egotists or fools try to pick tops and bottoms. Which one are you?
When the market leaders begin to lose relative strength even though the news is still very good, and buying strength and selling weakness no longer works, get out of stocks in general, because the game is over. It is enough for the experienced trader to perceive that something is wrong. He must not expect the tape to become a lecturer. His job is to listen for it to say "Get Out!" and not wait for it to submit a legal brief for his approval.
There is no single timing system that will consistently, indefinitely work. Morgan Stanley back-tested the VIX predictive ability. It was virtually useless at signalling tops.
As more people start to ask about the market, it signals a top.
Staff problems have always been around. And people always think the next gen is greedy and don't want to work hard.
Cut your losses. The first loss is usually the smallest.
Don't sell your winners and keep your losers.
When a position declines by 10%, query what has changed. If you don't want to buy, then you should cut your position.
It is those holds that are to cheap to sell but not attractive enough to buy that make a portfolio stale and retard performance.
More money in the markets chasing short-term returns should be a positive for long-term investors by providing opportunities. Some confuse charm, a low handicap and a bull market for investment brands. Successful managers often expand their lifestyle and build big overheads. People can over-extend themselves and then hope the business keeps performing to pay for it all. Becomes dependent on the future and short-term performance.
Ability for humans to adapt: "The doomsayers work by extrapolation; they take a trend and extend it, forgetting that the doom factor sooner or later generates a coping mechanism... you cannot extrapolate any series in which the human element intrudes; history, that is the human narrative, never follows and will always foil the scientific curve." - Barbara Tuchman.
The market can stay irrational longer than you can stay solvent.
Success inevitably breeds hubris in one form or another, and in the hedge fund business, arrogance eventually levels the exalted. Hubris leads to private jets, multiple golf clubs, homes in the south of France and Nantucket, and younger wives.
Things tend to bottom when conditions look their worst. The peak of maximum bearishness.
"It was a devastating time. I was halfway through rebuilding our home, and we were living in the small cottage. I remember waking up every night like clockwork at 3am, literally in a cold sweat, hearing the children peacefully breathing, and agonising over the portfolio. It was the worst agony I have ever experienced. It went on night after day after night. Stocks were getting destroyed. Our portfolio was dying before my eyes, yet I was also terrified of getting whipsawed. April and May were horrors. We survived, but May 1970 was a lesson I will never forget. When you are managing risk in a portfolio, you always have to remember that there is a possibility of a catastrophic outcome. Markets are prone to extremes, both up and down. In good times, we all operate under the assumption that liquidity is a constant, and that if a position goes wrong, you can expeditiously exit with only minimal damage. That spring, in the midst of tumultuous political and economic events, I learned the hard way that in a market meltdown, not only does liquidity evaporate, but prices can fall so steeply that all decisions have the potential for serious adverse consequences."
Didn't get as much money as he thought when starting a new fund. Some sure things didn't come through. Was flattered and frightened that so many friends came in.
'Tim': On his beautiful Chippendale desk sits a small plaque, which says totis porcis - the whole hog. There is also a small porcelain pig, which reads "it takes courage to be a pig." I think Stan Druckenmiller, who coined the phrase, gave him the pig. To get really big long-term returns, you have to be a pig and ride your winners. [Ride the wave to the shore. Add to your winners.] Accept volatility and concentration. Diversification is the enemy of performance. Believes running a portfolio is a solitary activity. For me it doesn't work to have partners. In the end, one mind in the dead of night has to make the buy and sell decisions. Tim keeps himself totally inaccessible to all buy a few select strategists and analysts. He speaks with other money managers and to businesspeople who are working in the real economy. He travels continually. He is a very curious, inquisitive man. He operates almost like a secret agent.
He became disenchanted with having so many analysts. He had become a manager of analysts, rather than being a stock picker and an investorm which is what he wanted to be and what he thought he was good at.
Probably the biggest intellectual problem an investor must wrestle with is the constant barrage of noise and babble. One of Taleb's majorr themes is that the wise man listens for meaning, but the fool gets only the noise.
When an investor focuses on short-term increments, he or she is observing the variability of the portfolio, not the returns - in short, being fooled by randomness.
An Australian oil man, John Masters, expressed it succinctly in one of his annaul reports: "You have to recognise that every 'out-front' maneuver is going to be lonely. But if you feel entirely comfortable, then you're not far enough ahead to do any good. That warm sense of everything going well is usually the body temperature at the centre of the herd. Only if you're far enough ahead to be at risk do you have a chance for large rewards."
Retail flows typically come at the worst times, in both directions. Dalbar study: average manager underperforms the market, and the average investor underperforms the fund by investing and redeeming at the wrong times.
It is those holds that are to cheap to sell but not attractive enough to buy that make a portfolio stale and retard performance.
Only egotists or fools try to pick tops and bottoms. Which one are you?
When the market leaders begin to lose relative strength even though the news is still very good, and buying strength and selling weakness no longer works, get out of stocks in general, because the game is over. It is enough for the experienced trader to perceive that something is wrong. He must not expect the tape to become a lecturer. His job is to listen for it to say "Get Out!" and not wait for it to submit a legal brief for his approval.
There is no single timing system that will consistently, indefinitely work. Morgan Stanley back-tested the VIX predictive ability. It was virtually useless at signalling tops.
As more people start to ask about the market, it signals a top.
Staff problems have always been around. And people always think the next gen is greedy and don't want to work hard.
Cut your losses. The first loss is usually the smallest.
Don't sell your winners and keep your losers.
When a position declines by 10%, query what has changed. If you don't want to buy, then you should cut your position.
February 28, 2021
Книгу прочел в 2007м еще, отзыв решил написать только сейчас.
Книга изобилует множеством интересных историй трейдера Бартона Биггса из сферы его работы на фондовом рынке.
Есть его поиск различных идей, которые должны "выстрелить". Но некоторые до сих пор, спустя 13 лет не выстрелили)) Например фондовый рынок африканских стран.
Но есть идеи, которые нахожу интересными даже сейчас.
Есть подробное описание кризисов 1970-х, 1985-го, 2000-го годов.
Сам периодически перечитываю.
Книга изобилует множеством интересных историй трейдера Бартона Биггса из сферы его работы на фондовом рынке.
Есть его поиск различных идей, которые должны "выстрелить". Но некоторые до сих пор, спустя 13 лет не выстрелили)) Например фондовый рынок африканских стран.
Но есть идеи, которые нахожу интересными даже сейчас.
Есть подробное описание кризисов 1970-х, 1985-го, 2000-го годов.
Сам периодически перечитываю.
January 25, 2022
Magazinsel kisimlari ve gereksiz detaylari bir kenara birakirsak fon kuracaklar icin dunyadaki sayili kitaptan biridir, ancak bir yatirim kitabi olarak dusunuldugunde cok cok iyi degil.
Yatirim hikayeleri ve yatirimci biyografileri genel olarak akici. Farkli tarzlara sahip yatirimcilari anlatmasi guzel olmasina ragmen bu yatirimcilarin eslerinin katildigi partilere ya da yatlarina yatirimlarindan daha cok yer verilmesi can sikici.
Yatirim hikayeleri ve yatirimci biyografileri genel olarak akici. Farkli tarzlara sahip yatirimcilari anlatmasi guzel olmasina ragmen bu yatirimcilarin eslerinin katildigi partilere ya da yatlarina yatirimlarindan daha cok yer verilmesi can sikici.
December 4, 2019
Some real gem like advice for buy side hopefuls in how to navigate around the financial industry. Especially in the hedge fund world. Though it seems like Morgan Stanley completely spotless with the author making no mistakes in his part. Makes him look a little self absorbed in that aspect, though he never failed to mention his mistakes when he started his own hedge fund.
November 4, 2021
I enjoy this book a lot. Lots of ideas and perspectives.
Totally recommended if you are in the capital management business.
Easy to read and super entertaining.
I like there this business does not discriminate, and doesn't distinct between Yale smarty pants and average people. Everyone could fail in this business
Totally recommended if you are in the capital management business.
Easy to read and super entertaining.
I like there this business does not discriminate, and doesn't distinct between Yale smarty pants and average people. Everyone could fail in this business
April 7, 2023
The author, Barton Biggs, who passed away in 2012, generously shared his wisdom and knowledge of the hedge fund world. He shined the light on how they formed, operated, and performed. A lot of insights for people who want to go found his shop. One of the best books of its genre, if not the the best.
May 13, 2022
Funny and easy to read. The author doesn’t have a good understanding of statistics but he knows his blind spots and seems to have a good understanding of the HF world in general. There are some great anecdotes.
October 24, 2017
Incredible stories in the hedge fund industry!
August 27, 2018
Amazing book, 10/10 would recommend
May 30, 2020
Collection of sometimes interesting anecdotes, and lots of gripes on the perils and stresses of money management.
October 4, 2020
Interesting historical view on hedge funds
December 3, 2020
Great insight on the life of a Hedge Fund investor.
September 17, 2021
Liked the insight into AM life and the interesting anecdotes
November 14, 2022
Well written and some very enjoyable social musings peppered throughout. Reading this in 2022 I would be interested to hear his thoughts on the past 15 years, not least of all the last two!
June 19, 2023
It took 9 months to read. Not because it is long, but because it was boring a little bit after reading Market Wizards.
August 26, 2023
Captivating look at the human side of the hedge fund business and the psychology that drives market participants
October 7, 2025
Offers some insights into the hidden world of money managers. Chapters are mostly interesting stories with a takeaway.
May 4, 2025
Amazing!
This book is an excellent read even after 20 years. This could become a classic if not already so. Amazing!
This book is an excellent read even after 20 years. This could become a classic if not already so. Amazing!
February 12, 2015
Interesting book, but it lacks a clear theme. Talks about hedge fund management (from the investment point of view), both from the authors own experiences and anecdotes of his colleagues in the industry. Some parts are very interesting, but taken as a whole, the book is pretty messy. Sometimes talking about him running a fund in the 70's, sometimes about his current (around 2003-2006) project of starting a new hedge fund, jumping back and forth between the two periods. Something about how to select a hedge fund as an outside investor, the psychology of short-selling, the different characters in the industry and the development of Morgan Stanley's international operations, mixed with Bismarck's private investments in 19th century Germany, the Japanese WWII occupation of Hong Kong, and John Maynard Keynes sex life. Taken separately, it's all very interesting, but none of the topics get dwelled upon enough to provide something much useful.
Other than that, the writing is good and I found it interesting, if not so useful. If you like Biggs, I'd recommend his later book Wealth War & Wisdom instead. If you want to know the financial industry, I'd recommend some Michael Lewis book instead.
Other than that, the writing is good and I found it interesting, if not so useful. If you like Biggs, I'd recommend his later book Wealth War & Wisdom instead. If you want to know the financial industry, I'd recommend some Michael Lewis book instead.
December 12, 2017
LIQUDITY IS A COWARD; IT DISAPPEARS AT THE FIRST SIGN OF TROUBLE.
Prime brokers make money from lending securities and loans.
Fund of fund investors are like asset consultants but you pay an asset based fee rather than a consulting fee.
Success inevitably breeds hubris in one form or another.
A questioning mind, the gambling instinct and the ability to make tough decisions on inconclusive evidence are all essential characteristics of an investor.
Every investor in hedge funds should consider where the fund manager is in their personal motivation cycle.
Harmonious, happy meetings may be a sign of groupthink and complacency, whereas agitation, passionate arguments and some stress are good signs.
In investing democracies don't work. Decision making and responsibility has to be located in an individual.
IF we get out our mentality being what it is, we shall never get in again until much too late and will assuredly be left behind when the recovery does come.
Prime brokers make money from lending securities and loans.
Fund of fund investors are like asset consultants but you pay an asset based fee rather than a consulting fee.
Success inevitably breeds hubris in one form or another.
A questioning mind, the gambling instinct and the ability to make tough decisions on inconclusive evidence are all essential characteristics of an investor.
Every investor in hedge funds should consider where the fund manager is in their personal motivation cycle.
Harmonious, happy meetings may be a sign of groupthink and complacency, whereas agitation, passionate arguments and some stress are good signs.
In investing democracies don't work. Decision making and responsibility has to be located in an individual.
IF we get out our mentality being what it is, we shall never get in again until much too late and will assuredly be left behind when the recovery does come.
October 8, 2022
Barton Biggs was a good writer (now deceased). There comes a point in the book when Biggs discusses the industry's poor attitude toward women's abilities to be equity portfolio managers. As a person who just spent ten years trying and failing to get an interview, anywhere in the U.S., for ANY position on an equity portfolio management team, that part of the book punched me in the gut. It just really sucked to have that discouraging attitude shoved in my face, when I thought I was reading a book by and about my peers, only to find out that THEY don't consider ME to be a peer.
I am now an equity PM, outperforming the S&P 500 in the past, currently, and likely in the future. It sticks in my craw that nobody would give me an interview, and that Biggs took the industry's stance against women PMs as such a given that he made no bones about mentioning it unapologetically in his book.
You'll probably like the book better if you're a man.
I am now an equity PM, outperforming the S&P 500 in the past, currently, and likely in the future. It sticks in my craw that nobody would give me an interview, and that Biggs took the industry's stance against women PMs as such a given that he made no bones about mentioning it unapologetically in his book.
You'll probably like the book better if you're a man.
December 14, 2025
Although, on the one hand, this book tells us about the stars of the investment business, on the other hand, it tells us that nothing is out of control. All their results are based on a "mystery." In this case, each investor can and should control only one thing - time, despite the fact that all the legends claim otherwise. Although this remains true and creates a dichotomy.
//
Хотя, с одной стороны, эта книга рассказывает нам о звездах инвестиционного бизнеса, с другой стороны, она говорит нам, что ничто не поддаётся контролю. Все их результаты основаны на "тайне". В этом случае каждый инвестор может и должен контролировать только одну вещь - время, несмотря на то, что все легенды, утверждают обратное. Хотя это остаётся верным и порождает дихотомию.
//
Хотя, с одной стороны, эта книга рассказывает нам о звездах инвестиционного бизнеса, с другой стороны, она говорит нам, что ничто не поддаётся контролю. Все их результаты основаны на "тайне". В этом случае каждый инвестор может и должен контролировать только одну вещь - время, несмотря на то, что все легенды, утверждают обратное. Хотя это остаётся верным и порождает дихотомию.
December 20, 2011
One of the risks involved in having an audio book queue that stretches to years is that you can acquire a book on something you're interested in that holds little interest by the time you get to read it.
That's what happened here. This book seems to be war stories from hedge funds and other exotic investments. There was a time when I was very interested in that world. Heck, there was a time when I worked in that world. Today, I'm less interested and the stories feel a bit dull to me. They seem well-written and entertaining, and I can recommend the book given an interest, but it just isn't for me.
That's what happened here. This book seems to be war stories from hedge funds and other exotic investments. There was a time when I was very interested in that world. Heck, there was a time when I worked in that world. Today, I'm less interested and the stories feel a bit dull to me. They seem well-written and entertaining, and I can recommend the book given an interest, but it just isn't for me.
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