The most recommended hedge fund books

Who picked these books? Meet our 15 experts.

15 authors created a book list connected to hedge funds, and here are their favorite hedge fund books.
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Book cover of The Billionaire's Apprentice

Claire A. Hill Author Of Better Bankers, Better Banks: Promoting Good Business through Contractual Commitment

From my list on bankers, especially bankers behaving badly.

Who am I?

I’ve always been interested—a vast understatement to anyone who knows me—in what makes people tick. I’ve focused on analyzing business actors – bankers, lawyers, investors, executives, shareholders, and others. What do they want? Some combination of money, power, or prestige? How does loving to win fit in? How about hating to lose? When is enough (money/power/prestige) enough? What do they think is ok to do to get what they want? What do they think is not ok? Amazingly, as a law professor, I can pursue that interest as part of my job, and – I think and hope – do so in a way that might help lawmakers, regulators, and policymakers do better.

Claire's book list on bankers, especially bankers behaving badly

Claire A. Hill Why did Claire love this book?

This is a beautifully written story about bankers who rise, and fall spectacularly – into crime, in this case insider trading, with the loss of money, status, and prestige that followed.

What’s particularly fascinating is the historical, ethnic, and sociological backdrop. The book begins with a scene in which Indian-born Rajat Gupta, having come to the US and ascended to the highest echelons of the US business world, was attending a White House dinner for India’s Prime Minister.

The book ends as some people who had been on top are dealing with the aftermath of trials that went very badly for them. The word “Shakespearean” has been used to describe this book, and aptly so.

By Anita Raghavan,

Why should I read it?

2 authors picked The Billionaire's Apprentice as one of their favorite books, and they share why you should read it.

What is this book about?

Just as WASPs, Irish-Catholics and Our Crowd Jews once made the ascent from immigrants to powerbrokers, it is now the Indian-American's turn. Citigroup, PepsiCo and Mastercard are just a handful of the Fortune 500 companies led by a group known as the "Twice Blessed." Yet little is known about how these Indian emigres (and children of emigres) rose through the ranks. Until now...The collapse of the Galeon Group--a hedge fund that managed more than $7 billion in assets--from criminal charges of insider trading was a sensational case that pitted Preet Bharara, himself the son of Indian immigrants, against the best…


Book cover of No One Would Listen: A True Financial Thriller

John V. Petrocelli Author Of The Life-Changing Science of Detecting Bullshit

From my list on detecting bullshit, misinformation, and fake news.

Who am I?

As an experimental social psychologist, who has conducted years of empirical research on bullshitting behavior and bullshit detection, I’ve found compelling evidence that the worst outcomes of bullshit communications are false beliefs and bad decisions. I’m convinced that all of our problems, whether they be personal, interpersonal, professional, or societal are either directly or indirectly linked to mindless bullshit reasoning and communication. I’m just sick and tired of incompetent, bullshit artists who capitalize by repackaging and selling what I and other experimental psychologists do for free. It’s time the masses learn that some of us who actually do the research on the things we write about can actually do it better.    

John's book list on detecting bullshit, misinformation, and fake news

John V. Petrocelli Why did John love this book?

I found this book absolutely thrilling as a real-life story of one of the biggest bullshit busts in history. Bernie Madoff’s Ponzi scheme ran for almost 18 years without much concern or investigation by the U.S. Securities and Exchange Commission (SEC). But, Harry Markopolos, a little-known number cruncher from a Boston equity derivatives firm, was onto Madoff after looking at Madoff’s financial records, several years before the bust made headlines. Page by page, Markopolos details his pursuit of the greatest financial criminal in history, and reveals the massive fraud, governmental incompetence, and criminal collusion that has changed thousands of lives forever-as well as the world’s financial system. All the while, no one, including the SEC, would listen. As such, the book is the quintessential example of how spellbinding bullshit can be. 

By Harry Markopolos,

Why should I read it?

1 author picked No One Would Listen as one of their favorite books, and they share why you should read it.

What is this book about?

Harry Markopolos and his team of financial sleuths discuss first-hand how they cracked the Madoff Ponzi scheme No One Would Listen is the thrilling story of how the Harry Markopolos, a little-known number cruncher from a Boston equity derivatives firm, and his investigative team uncovered Bernie Madoff's scam years before it made headlines, and how they desperately tried to warn the government, the industry, and the financial press. Page by page, Markopolos details his pursuit of the greatest financial criminal in history, and reveals the massive fraud, governmental incompetence, and criminal collusion that has changed thousands of lives forever-as well…


Book cover of Tap Dancing to Work: Warren Buffett on Practically Everything, 1966-2013

John M. Longo Author Of Buffett's Tips: A Guide to Financial Literacy and Life

From my list on Warren Buffett on investing and life.

Who am I?

I’m an investor from three perspectives or dimensions. First, I manage money for individuals and institutions as Chief Investment Officer of Beacon Trust, a $4 billion registered investment advisor based in NY/NJ. Second, I teach MBA classes in investing at Rutgers Business School, Columbia Business School, London Business School, and Hong Kong University (HKU) Business School. Third, I write articles and books on investing, including The Art of Investing: Lesson’s from History’s Greatest Traders and Buffett’s Tips: A Guide to Financial Literacy and Life. I’ve personally met Warren Buffett on four separate occasions and think he is an excellent role model from both investing and personal perspectives.  

John's book list on Warren Buffett on investing and life

John M. Longo Why did John love this book?

Carol Loomis has edited Buffett’s widely read Letter to Shareholders for many decades. She is also an outstanding journalist who was a writer and editor at Fortune for 60 years. Her book is a compilation of many of her interviews with Buffett over the years, with some additional commentary. As the book subtitle indicates, the book covers “practically everything” in a conversational format so it is sort of a quasi-biography of Buffett.

By Carol J. Loomis,

Why should I read it?

1 author picked Tap Dancing to Work as one of their favorite books, and they share why you should read it.

What is this book about?

Tap Dancing to Work compiles six decades of writing on legendary investor Warren Buffett, from Carol Loomis, the reporter who knows him best.

Warren Buffett built Berkshire Hathaway into something remarkable - and Fortune had a front-row seat

When Fortune writer Carole Loomis first mentioned a little-known Omaha hedge fund manager in a 1966 article, she didn't dream that Warren Buffett would become the world's greatest investor. Nor did she imagine that she and Buffett would be close friends.

As Buffett's fortune and reputation grew, Loomis used her unique insight into his thinking to chronicle his work, writing scores of…


Book cover of Hedge Hogs: The Cowboy Traders Behind Wall Street's Largest Hedge Fund Disaster

Brad Schaeffer Author Of Life in the Pits: My Time as a Trader on the Rough-and-Tumble Exchange Floors

From my list on what makes commodities traders tick.

Who am I?

After graduating from the University of Illinois in 1989 with an LAS degree in communications and a knack for artwork, I had no idea what I wanted to do. That was until my brother pulled me from my low-paid art job in Chicago to work as a clerk on the floor of the Chicago Mercantile Exchange. I eventually became a trader on that same floor, as well as an oil and gas dealer in New York. Screaming and yelling in the trading pits while money moved back and forth with a shout and a hand signal I learned more about investing, trading, and human nature through osmosis than I ever could in an MBA course.

Brad's book list on what makes commodities traders tick

Brad Schaeffer Why did Brad love this book?

A relatively new arrival on the list, Dreyfuss’s diligently crafted book is the most in-depth look at one of Wall Street’s most spectacular, if lesser-known, collapses in 2006.

The book takes us through the rise of two forces in energy trading embarking on a collision course that would be the ruin of one and an immense windfall of the other. Amaranth hedge fund was an up-and-comer and darling of the hedge fund space. Boasting stellar returns on its several billion in capital, it was able to raise massive sums to hand over to its wunderkind energy trading guru, the Canadian Brian Hunter.

Hunter had set out to dethrone John Arnold at Centaurus (the former Enron whiz kid and youngest member of the Forbes 400) as the biggest energy derivatives trader on the Street. Hunter’s ego soon got him into trouble when a series of disastrous and massively overleveraged bets collapsed,…

By Barbara T. Dreyfuss,

Why should I read it?

2 authors picked Hedge Hogs as one of their favorite books, and they share why you should read it.

What is this book about?

For readers of The Smartest Guys in the Room and When Genius Failed, the definitive take on Brian Hunter, John Arnold, Amaranth Advisors, and the largest hedge fund collapse in history

At its peak, hedge fund Amaranth Advisors LLC had more than $9 billion in assets. A few weeks later, it completely collapsed. The disaster was largely triggered by one man: thirty-two-year-old hotshot trader Brian Hunter. His high-risk bets on natural gas prices bankrupted his firm and destroyed his career, while John Arnold, his rival at competitor fund Centaurus, emerged as the highest-paid trader on Wall Street. Meticulously researched and…


Book cover of More Money Than God: Hedge Funds and the Making of a New Elite

Jennifer Riel Author Of Creating Great Choices: A Leader's Guide to Integrative Thinking

From Jennifer's 3 favorite reads in 2023.

Who am I?

Author Strategist Designer Canadian

Jennifer's 3 favorite reads in 2023

Jennifer Riel Why did Jennifer love this book?

This book is more than a decade old, but it is so smart, so well written, so ultimately enraging that I devoured it.

Part history lesson, part colourful character study, it begins with the origin story of the hedge fund industry and takes the reader through the most important events and changes in the space over time. Mallaby does a great job of explaining the technical details and industry intricacies in approachable and understandable ways that helped me see things in a new way.

By Sebastian Mallaby,

Why should I read it?

3 authors picked More Money Than God as one of their favorite books, and they share why you should read it.

What is this book about?

The first book of its kind: a fascinating and entertaining examination of hedge funds today Shortlisted for the Financial Times/Goldman Sachs Business Book of the Year Award 'An enormously satisfying book: a gripping chronicle of the cutting edge of the financial markets and a fascinating perspective on what was going on in these shadowy institutions as the crash hit' Observer Wealthy, powerful, and potentially dangerous, hedge-find managers have emerged as the stars of twenty-first century capitalism. Based on unprecedented access to the industry, More Money Than God provides the first authoritative history of hedge funds. This is the inside story…


Book cover of A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation

Susanne Trimbath Author Of Lessons Not Learned: 10 Steps to Stable Financial Markets

From my list on stock market plumbing.

Who am I?

My entire career has been spent in finance. From life insurance to central banks, from stock exchanges to post-trade clearing and settlement, this is all I’ve ever done. My college degrees include BSBA in Business/Marketing, MBA in Management, and PhD in Economics. In addition to knowing what a lot of people know about finance, I also worked inside the “black box” of the Federal Reserve System and depository trust and clearing corporations (in 4 cities, on 2 continents). Therefore, I know more about the plumbing of stock market infrastructure than most people who have careers (and education) as long as mine.

Susanne's book list on stock market plumbing

Susanne Trimbath Why did Susanne love this book?

I started working at Depository Trust Company in New York in September 1987 – a month later the “Black Monday” stock market crash happened! At the time, it was very difficult to see exactly what caused it. “When you are up to your neck in alligators, it is hard to remember why you drained the swamp!” This book explains how Wall Street banks hatched all those alligator eggs by hiring MIT math-whizz-kids and turning them loose without explaining the simplest thing about the stock market to them. One of the errors in their models was that they did not take bank holidays into account when calculating the time value of stocks and option prices.

By Richard Bookstaber,

Why should I read it?

2 authors picked A Demon of Our Own Design as one of their favorite books, and they share why you should read it.

What is this book about?

Inside markets, innovation, and risk Why do markets keep crashing and why are financial crises greater than ever before? As the risk manager to some of the leading firms on Wall Street-from Morgan Stanley to Salomon and Citigroup-and a member of some of the world's largest hedge funds, from Moore Capital to Ziff Brothers and FrontPoint Partners, Rick Bookstaber has seen the ghost inside the machine and vividly shows us a world that is even riskier than we think. The very things done to make markets safer, have, in fact, created a world that is far more dangerous. From the…


Book cover of When Genius Failed: The Rise and Fall of Long-Term Capital Management

Brad Schaeffer Author Of Life in the Pits: My Time as a Trader on the Rough-and-Tumble Exchange Floors

From my list on what makes commodities traders tick.

Who am I?

After graduating from the University of Illinois in 1989 with an LAS degree in communications and a knack for artwork, I had no idea what I wanted to do. That was until my brother pulled me from my low-paid art job in Chicago to work as a clerk on the floor of the Chicago Mercantile Exchange. I eventually became a trader on that same floor, as well as an oil and gas dealer in New York. Screaming and yelling in the trading pits while money moved back and forth with a shout and a hand signal I learned more about investing, trading, and human nature through osmosis than I ever could in an MBA course.

Brad's book list on what makes commodities traders tick

Brad Schaeffer Why did Brad love this book?

This fascinating read tells the story of the rise and then spectacular fall of the once celebrated hedge fund Long-Term Capital Management.

What made LTCM so attractive to Wall Street investors was its stable of "dream team" quants and financial minds, led by the laconic John Merriweather. Merriweather (featured in the opening Chapter of Liar's Poker) was a former Solomon Brothers bond-trading guru, who after leaving the firm amid a scandal managed to assemble a team of financial powerhouses that included two Nobel Laureates as well as a cadre of respected traders.

From 1993 to 1997 LTCM's returns were first-rate; the sky seemed the limit for this small band of supertraders, professors, and modelers who arrogantly considered themselves a cut above the rest of The Street.

But in 1998, it all came crashing down...and right quick. Having believed their financial models could accurately predict price action not just in…

By Roger Lowenstein,

Why should I read it?

4 authors picked When Genius Failed as one of their favorite books, and they share why you should read it.

What is this book about?

Picking up where Liar's Poker left off (literally, in the bond dealer's desks of Salomon Brothers) the story of Long-Term Capital Management is of a group of elite investors who believed they could beat the market and, like alchemists, create limitless wealth for themselves and their partners.

Founded by John Meriweather, a notoriously confident bond dealer, along with two Nobel prize winners and a floor of Wall Street's brightest and best, Long-Term Captial Management was from the beginning hailed as a new gold standard in investing. It was to be the hedge fund to end all other hedge funds: a…


Book cover of Storm Lake: Change, Resilience, and Hope in America's Heartland

G. Wayne Miller Author Of Unfit to Print: A Modern Media Satire

From my list on an important moment or time in history.

Who am I?

I have been passionate about journalism since I was a teenager, when I became the co-editor of my high school newspaper. My career as a full-time journalist began decades ago, at a small family-owned newspaper in Berkshire County, Mass., and continued through staff writer positions at The Cape Cod Times, Providence Journal and now at OceanStateStories.org, the new non-profit news outlet based at Salve Regina University’s Pell Center in Newport, R.I., that I co-founded and now direct. So I have the long and inside view of American journalism!

G.'s book list on an important moment or time in history

G. Wayne Miller Why did G. love this book?

In Storm Lake, published in 2018, Pulitzer-winning editor, publisher, and author Art Cullen writes with passion, insight and humor about immigration, family, community and the history and future of this part of Iowa – and, to an extent, much of America.

His family’s newspaper, the Storm Lake Times Pilot, serves as a model for local coverage and investigative reporting in an era when hedge funds and out-of-town chains have left many parts of the country without newspapers or with “ghost papers,” shells of their former selves. 

By Art Cullen,

Why should I read it?

1 author picked Storm Lake as one of their favorite books, and they share why you should read it.

What is this book about?

"A reminder that even the smallest newspapers can hold the most powerful among us accountable."—The New York Times Book Review

Watch the documentary Storm Lake on PBS.

Iowa plays an outsize role in national politics. Iowa introduced Barack Obama and voted bigly for Donald Trump. But is it a bellwether for America, a harbinger of its future? Art Cullen’s answer is complicated and honest. In truth, Iowa is losing ground. The Trump trade wars are hammering farmers and manufacturers. Health insurance premiums and drug prices are soaring. That’s what Iowans are dealing with, and the problems they face are the…


Book cover of Principles: Your Guided Journal (Create Your Own Principles to Get the Work and Life You Want)

Somi Arian Author Of Career Fear (and how to beat it): Get the Perspective, Mindset and Skills You Need to Futureproof your Work Life

From my list on preparing you for the digital era.

Who am I?

I'm Somi Arian, a tech philosopher, award-winning filmmaker, author, LinkedIn-Top-Voice, and the founder of InPeak, a Web3 education and professional networking platform. My background in Philosophy of Science and Technology informs my role in society as a 'Transition Architect.' My documentary, The Millennial Disruption, featuring industry leaders, won three international awards. My book, Career Fear (and how to beat it), addresses the future of work and the skills we all need to survive and thrive in the age of Artificial Intelligence and Blockchain. As a speaker, I give talks and workshops internationally on the impact of technology on society, the business landscape, the future of work, Web3, NFTs, the Metaverse, and blockchain technology.

Somi's book list on preparing you for the digital era

Somi Arian Why did Somi love this book?

In this book, Ray Dalio shares the invaluable knowledge he has gathered throughout his career.

He believes that principles of life, management, economics, and investing can all be systematized and understood like machines. With hundreds of practical lessons that revolve around his principles of "radical truth" and "radical transparency," Dalio highlights the most effective ways for individuals and organizations to make decisions, approach challenges, and build strong teams.

He also describes the innovative tools that his firm uses to bring idea meritocracy to life, including "baseball cards" for employees that distill their strengths and weaknesses and computerized decision-making systems that make believability-weighted decisions.

While the book provides novel ideas for organizations and institutions, Principles also offers a clear, straightforward approach to decision-making that Dalio believes anyone can apply, no matter their goal.

By Ray Dalio,

Why should I read it?

2 authors picked Principles as one of their favorite books, and they share why you should read it.

What is this book about?

From Ray Dalio, the legendary investor and #1 New York Times bestselling author of Principles—whose books have sold more than five million copies worldwide—comes a guided reflection journal that empowers readers everywhere to develop their own principles for success in work and life.

“Principles are fundamental truths that serve as the foundations for behavior that gets you what you want out of life.” —Ray Dalio

In his #1 New York Times bestseller Principles, legendary investor Ray Dalio introduced millions of readers around the world to the unconventional approach he developed as the founder and builder of Bridgewater Associates, the largest…


Book cover of The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution

Richard L. Weissman Author Of Trade Like a Casino

From Richard's 3 favorite reads in 2023.

Who am I?

Author Trader Risk Manager Author Spiritual seeker Poet

Richard's 3 favorite reads in 2023

Richard L. Weissman Why did Richard love this book?

This book was not only educational to students of the markets but was also entertaining with a compelling narrative storyline that showed how Jim Simons transitioned from a math academician to become the most successful hedge fund manager in history.

Although not stated explicitly, Simons and the team at Renaissance Technologies developed models that adhered to the Casino Paradigm by combining a positive expectancy model with solid risk management protocols. 

By Gregory Zuckerman,

Why should I read it?

1 author picked The Man Who Solved the Market as one of their favorite books, and they share why you should read it.

What is this book about?

NEW YORK TIMES AND SUNDAY TIMES BUSINESS BESTSELLER

SHORTLISTED FOR THE FT AND MCKINSEY BUSINESS BOOK OF THE YEAR AWARD 2019

'Reads more like a delicious page-turning novel...Put it on your holiday gift list for your favourite hedge-fund honcho' Bloomberg

'A compelling read' Economist

'Captivating' New York Times book review

Jim Simons is the greatest moneymaker in modern financial history. His record bests those of legendary investors, including Warren Buffett, George Soros and Ray Dalio. Yet Simons and his strategies are shrouded in mystery. The financial industry has long craved a look inside Simons's secretive hedge fund, Renaissance Technologies and…