What will I learn about: the foundational strategy of hedge funds by learning how they balance buying 'long' on promising companies and selling 'short' on overvalued stocks?

Understand the foundational strategy of hedge funds by learning how they balance buying 'long' on promising companies and selling 'short' on overvalued stocks.

What will I learn about: why hedge funds are surprisingly risk-averse by utilizing diversified portfolios that act as insurance against unpredictable market swings?

Discover why hedge funds are surprisingly risk-averse by utilizing diversified portfolios that act as insurance against unpredictable market swings.

What will I learn about: Learn how early pioneer Steinhardt, Fine & Berkowitz thrived during 1970s inflation by aggressively buying large chunks of discounted stocks to bet big and win big?

Learn how early pioneer Steinhardt, Fine & Berkowitz thrived during 1970s inflation by aggressively buying large chunks of discounted stocks to bet big and win big.

What will I learn about: how Commodities Corporation rebounded from near bankruptcy by pivoting away from physical production data to analyzing financial trends and investor psychology?

Find out how Commodities Corporation rebounded from near bankruptcy by pivoting away from physical production data to analyzing financial trends and investor psychology.

What will I learn about: the strategy of anticipating market shifts by recognizing that investors naturally follow trends, allowing traders to profit by buying at the first sign of an upward price tip?

Master the strategy of anticipating market shifts by recognizing that investors naturally follow trends, allowing traders to profit by buying at the first sign of an upward price tip.

More Money Than God

Hedge Funds and the Making of a New Elite

Sebastian Mallaby

★ 4.3 / 5(99 ratings)

Start ListeningDownload QR code that opens AudiobookHub on the App Store

Try free on iPhoneScan to start in 5 seconds

Categories:

Money & Investments

If You're Curious About These Questions...

You should listen to this audiobook

💡Did you know that a handful of private investors once managed to outmaneuver the world’s most powerful central banks and change the course of global finance?
💡Have you ever wondered how hedge fund managers consistently generate massive profits even during the most volatile economic crashes?
💡Are you curious about the hidden history and controversial tactics of the mysterious organizations that now wield more power than many national governments?

Listen to More Money Than God — Free Audiobook

Loading player...

Key Takeaways from More Money Than God

✓Understand the foundational strategy of hedge funds by learning how they balance buying 'long' on promising companies and selling 'short' on overvalued stocks.
✓Discover why hedge funds are surprisingly risk-averse by utilizing diversified portfolios that act as insurance against unpredictable market swings.
✓Learn how early pioneer Steinhardt, Fine & Berkowitz thrived during 1970s inflation by aggressively buying large chunks of discounted stocks to bet big and win big.
✓Find out how Commodities Corporation rebounded from near bankruptcy by pivoting away from physical production data to analyzing financial trends and investor psychology.
✓Master the strategy of anticipating market shifts by recognizing that investors naturally follow trends, allowing traders to profit by buying at the first sign of an upward price tip.

Learning Tools

Reinforce what you learned from More Money Than God

Mind Map

More Money Than God

Core Mechanics+

Risk Management+

Legendary Funds & Strategies+

Global Economic Impact+

Systemic Safety vs. Banks+

Quiz — Test Your Understanding

Question 1 of 8

What fundamental strategy, established by A. W. Jones, differentiates hedge funds from traditional investing?

A. They rely exclusively on government bailouts during market downturns to protect client assets.
B. They buy promising stocks 'long' and simultaneously sell unpromising stocks 'short.'
C. They avoid charging performance fees in order to attract a larger pool of retail investors.
D. They only invest in physical commodities like gold and silver to ensure stability.

Question 2 of 8

Despite the gambling nature of the stock market, why are hedge funds generally considered risk-averse?

A. Their diversified portfolios of 'long' and 'short' stocks balance each other out during market swings.
B. They are legally prohibited from investing in volatile tech or emerging market stocks.
C. The government provides a strict safety net to prevent any hedge fund from facing insolvency.
D. Managers only trade with their clients' money, completely protecting their personal wealth.

Question 3 of 8

After nearly going bankrupt due to an unexpected corn blight, how did Commodities Corporation pivot its strategy to achieve massive success?

A. They stopped trading agricultural commodities and moved entirely to real estate.
B. They hired better plant pathologists to predict weather patterns and crop diseases.
C. They shifted from analyzing physical production conditions to analyzing investor psychology and financial trends.
D. They began to short-sell international currencies instead of physical commodities.

Question 4 of 8

What conventional financial wisdom did George Soros upend in the 1980s with his Quantum fund?

A. The assumption that hedge funds could not influence national elections.
B. The belief that technology stocks were the safest long-term investment.
C. The principle that real estate markets were immune to global inflation.
D. The idea that major currencies, like the US dollar, were inherently stable and safe from speculation.

Question 5 of 8

Unlike earlier hedge funds that relied on massive scale or complex scientific formulas, what was the primary strategy of Julian Hart Robertson's Tiger fund?

A. Simply picking the best and worst stocks by thoroughly analyzing misvalued companies.
B. Influencing global political events to manipulate currency values.
C. Conducting high-frequency trades based on investor psychology and momentum.
D. Buying up bankrupt companies and liquidating their physical assets.

Question 6 of 8

How did Farallon's founder, Tom Steyer, ensure his traders didn't make overly risky bets just to earn high performance fees?

A. He capped the maximum amount of profit any single trader could make in a given year.
B. He required traders to keep their own savings invested in the fund so they would 'feel the pain' of losses.
C. He eliminated performance fees entirely and paid his traders a flat, predictable salary.
D. He required all high-risk trades to be approved by an external risk-management committee.

Question 7 of 8

According to the text, how did a hedge fund positively impact the economy of Indonesia in the early 2000s?

A. Farallon bought control of a struggling major bank, raised its share price, and attracted foreign investors back to the country.
B. Quantum shorted the national currency, forcing the government to adopt a more stable economic policy.
C. Tiger fund bought up the nation's agricultural debt and forgave it, stabilizing the farming sector.
D. Steinhardt, Fine & Berkowitz provided a massive, interest-free loan to the Indonesian government.

Question 8 of 8

Why do hedge fund failures rarely require taxpayer bailouts, unlike the failures of major investment banks?

A. Hedge funds are heavily regulated by the government to legally prevent them from declaring bankruptcy.
B. Hedge funds only invest in stable, government-backed securities that cannot default.
C. Hedge funds rarely lend money to other financial institutions, so their collapse doesn't cause a systemic domino effect.
D. Hedge funds are legally required to keep billions of dollars in emergency cash reserves.