One of the first few books that I read about asset management firms and hedge funds was Inside the Black Box (Review | Amazon) by Rishi Narang. It was a great high level book which covered all the different components of a hedge fund such as market data, backtester, order management system, risk models, portfolio management, transactions cost analysis etc. As I continued to learn more about the industry, I wanted to read a more in-depth book that covered more than just the basics. Efficiently Inefficient by Lasse Pedersen is such a book that covers a variety of topics on hedge funds.
The book is divided into four sections:
- Active investment
- Equity strategies
- Asset allocation and Macro strategies
- Arbitrage strategies