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    More Money Than God by Sebastian Mallaby Summary

    More Money Than God
    Sebastian Mallaby
    4.11 (9495 Reviews)
    FinanceBusinessEconomics
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    Overview of More Money Than God

    Dive into the secretive world of hedge funds where billionaires gamble billions. Sebastian Mallaby's definitive industry history reveals how financial mavericks like George Soros navigated crises without taxpayer bailouts - a perspective so compelling, Tim Ferriss recommends it to anyone fascinated by high-stakes capitalism.

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    I do bad things, but I own them.

    ”
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    In 1949, Alfred Winslow Jones, a former socialist who had worked undercover against Nazis, created the first "hedged fund" with just $100,000. His improvised investment structure would spawn a financial revolution. By combining short selling with leverage and charging performance fees, Jones established a framework that would eventually produce fortunes that made J.P. Morgan look like a pauper. By 2006, the top hedge fund managers each earned over $1 billion annually - more money than God, as the saying goes. These modern financial alchemists live extravagantly with private islands and personal jets, but their greatest impact has been challenging academic orthodoxy about market efficiency while creating a powerful alternative to traditional banking structures. Jones's innovation was combining "speculative means for conservative ends." By routinely shorting part of his portfolio as insurance against market risk, he could invest more aggressively in promising stocks. He meticulously tracked returns from stock selection ("alpha") separately from market exposure ("beta") - anticipating academic breakthroughs in portfolio theory by years. His secretive approach established the culture of mystery that would define hedge funds for generations.

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    The Quant Revolution: Mathematics Meets Markets

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    The Greatest Trade: Betting Against the Bubble

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