McCrary's How to Create & Manage a Hedge Fund is far more than its title suggests. It is a goldmine of knowledge for anyone interested in US hedge funds—managers, investors and counterparties alike. It tells you how to launch and manage a fund. It shows you how to "kick the tires" before you invest. It reveals things to look for before you extend credit.

One word to describe this book is "authoritative." It rolls up its sleeves and describes in detail: legal structures, types of hedge funds, hedge fund business plans, marketing, regulation, sourcing leverage, trading strategies, performance measurement, fee structures, taxation, risk management, accounting, use of derivatives—most aspects of the business.

It provides useful historical context, detailing the origins and growth of the industry. It also has a chapter recounting some hedge fund disasters: The Granite Fund, Fenchurch Capital Management, Long-Term Capital Management, etc.

For related books, see sections:

Portfolio Management - Hedge Funds

Portfolio Management - Specialty Strategies

Portfolio Management - General