High-risk/high-reward strategies, 55
High-water marks, 199
Hirch Re, 52
Historical performance, 52, 64­65
Holding period, 188
Hurdle rate, 199
Hybrid securities, 66
Incentive fees, 3­4, 14­15, 52, 142
Income reporting, 157­158
Income statement, 138, 146, 161
Index arbitrage, 65
Index options, 65
Individual investors
characteristics of, generally, 36, 96
high-net-worth individuals, 36­39
individual retirement plans, 40­44
semiaffluent investors, 39­40
Individual retirement accounts (IRAs)
characterized, 50
regulation of, 49, 131
rollover, 42
Roth, 43
simplified employee pension (SEP-IRA),
42­43
traditional, 41­42, 49, 50
Individual retirement plans
401(k) plans, 43­44, 49, 50
investment mechanisms, 40­41
Keogh plan, 42, 44, 49, 50
retirement savings plans (RSPs),
44
In-house marketing, 196, 198
Initial margin, 92­93, 95­96, 148­149
Initial public offering (IPO), 63­64,
137
Institutional investors, 54
Insurance companies
as investors, 35, 51­54
product development, 222
Interest accrual systems, 111
Interest expenses, 144­145, 204,
208
Interest income, 146
Interest-only (IO) notes, 27, 68
Interest rate risk, 26­28
Interest rates
compounding and, 112­113
fixed income arbitrage strategy, 67
impact of, 31, 68, 90, 207
Interim closing of the books, 161,
164­165
Internal Revenue Service, 131, 214
International investors, 196
International market, growth of,
220
Intraday positions, 89
Inventory accounting, 148
Investing styles, 218
Investment Advisers Act of 1940,
129­130
Investment advisory accounts,
conventional, 70
Investment Company Act, 128­130,
194
Investment techniques, common hedge
fund
asset-backed securities, 68
convertible arbitrage, 66­67
equity market neutral, 64­66
event driven, 60­64
fixed income arbitrage, 67­68
fund of funds, 69
long/short equity, 60
mortgage-backed securities, 68
Investment trends, 52
Investor, taxation as, 160
Investors, types of
consultants, 54­55
corporations, 35, 49
endowments, 35, 48­49
family offices, 35, 45­46
foundations, 35, 46­48
funds of funds, 35, 54
individual investors, 35­45
insurance companies, 35, 51­54
overview of, 35
partnerships, 35
pension funds, 35, 49­51
Japanese yen, 185
Jensen's alpha, 122­123
Jones, Alfred Winslow, 217­218
J. P. Morgan, 52
Jurisdictions, taxable, 158
Keogh plan
characterized, 42, 44, 48, 50
regulation of, 131
KMV Credit Monitor, 188
280
INDEX
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