Investment Strategies Reading List

Event Arbitrage

 

Convertible Arbitrage: Insights and Techniques for Successful Hedging by Nick P. Calamos (Hoboken, NJ: John Wiley & Sons, 2003). Convertible bonds as an event arbitrage strategy.

 

The Mental Strategies of Top Traders: The Psychological Determinants of Trading Success by Ari Kiev (Hoboken, NJ: John Wiley & Sons, 2009). The hedge fund SAC’s fusion of a catalyst approach to event arbitrage with performance / trading psychology.

 

Merger Arbitrage: A Fundamental Approach to Event-Driven Investing by Lionel Melka and Amit Shabi (Hoboken, NJ: John Wiley & Sons, 2014). A contemporary primer on merger arbitrage techniques.

 

Merger Arbitrage: How to Profit from Event-Driven Arbitrage (2nd edition) by Thomas Kirchner (Hoboken, NJ: John Wiley & Sons, 2015). A synthesis of global macro and event arbitrage strategies.

 

Trading Catalysts: How Events Move Markets and Create Trading Opportunities by Robert I. Webb (Upper Saddle River, NJ: FT Press, 2006). Event arbitrage strategies used amidst the early part of the 2003-08 speculative bubble.

 

World Event Trading: How to Analyze and Profit from Today’s Headlines by Andy Busch (Hoboken, NJ: John Wiley & Sons, 2007). Presents a series of frameworks that Busch uses for event arbitrage in currencies and equities markets.

 

Momentum

 

Asset Rotation: The Demise of Modern Portfolio Management and the Birth of an Investment Renaissance by Matthew P. Erickson (Hoboken, NJ: John Wiley & Sons, 2014). How exchange traded funds can be used for a momentum strategy that uses a two-asset portfolio.

 

Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk by Gary Antonacci (New York: McGraw-Hill, 2014). A momentum strategy that combines relative strength and trend-following approaches.

 

Unholy Grails: A New Road to Wealth by Nick Radge (Sydney: Radge Publishing, 2012). Radge’s experience using momentum strategies in Australian financial markets.

 

Trend-Following

 

The Complete TurtleTrader: How 23 Novice Investors Became Overnight Millionaires by Michael W. Covel (New York: HarperBusiness, 2009). The definitive account of the TurtleTraders experiment in rules-based trend-following.

 

Following the Trend: Diversified Managed Futures Trading by Andreas Clenow (Hoboken, NJ: John Wiley & Sons, 2013). How trend-following strategies have been profitable in managed futures.

 

Investing With the Trend: A Rules-Based Approach to Money Management by Gregory L. Morris (Hoboken, NJ: John Wiley & Sons, 2013). A rules-based methodology for trend-following.

 

Trend Following: Learn to Make Millions in Up or Down Markets (rev. edition) by Michael W. Covel (Upper Saddle River, NJ: FT Press, 2009). A popular primer on trend-following strategies.

 

The Trend Following Bible: How Professional Traders Compound Wealth and Manage Risk by Andrew Abraham (Hoboken, NJ: John Wiley & Sons, 2012). How commodities trading advisers use trend-following strategies.

 

Trend Following with Managed Futures: The Search for Crisis Alpha by Alex Greyserman and Kathryn Kaminski (Hoboken, NJ: John Wiley & Sons, 2014). How trend-following traders adapted to the financial market volatility of the 2007-09 global financial crisis.

 

Value

 

Accounting for Value by Stephen Penman (New York: Columbia University Press, 2010). The link between value investment, accounting, and equity valuation.

 

Active Value Investing: Making Money in Range-bound Markets by Vitaliy N. Katsenelson (Hoboken, NJ: John Wiley & Sons, 2007). An adaptation of value investing strategies to the 2003-08 speculative bubble.

 

Applied Value Investing: The Practical Applications of Benjamin Graham and Warren Buffett’s Valuation Principles to Acquisitions, Catastrophe Pricing, and Business Execution by Joseph Calandro, Jr (New York: McGraw-Hill, 2009). Value investing applied during the peak of the 2003-08 speculative bubble and the start of the 2007-09 global financial crisis.

 

The Art of Company Valuation and Financial Statement Analysis: A Value Investor’s Guide with Real-Life Case Studies by Nicolas Schmidlin (Hoboken, NJ: John Wiley & Sons, 2014). Contemporary fundamental analysis for value investors.

 

The Art of Value Investing: How the World’s Best Investors Beat the Market by John Heins and Whitney Tilson (Hoboken, NJ: John Wiley & Sons, 2013). A collection of interviews with successful fund managers who are value investors.

 

Brandes on Value: The Independent Investor by Charles Brandes (New York: McGraw-Hill, 2014). Brandes’ value investment experiences at Brandes Investment Partners LP.

 

Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations by Tobias E. Carlisle (Hoboken, NJ: John Wiley & Sons, 2014). A quantitative analysis of how activist investors use value investment strategies in the market for corporate control.

 

The Education of a Value Investor: My Transformative Quest for Wealth, Wisdom, and Enlightenment (New York: Palgrave Macmillan, 2014). Value investment as a framework for cultivating character and personal growth.

 

Extreme Value Hedging: How Activist Hedge Fund Managers Are Taking on the World by Ronald D. Orol (Hoboken, NJ: John Wiley & Sons, 2008). The experiences of value-oriented hedge fund managers during the 2003-08 speculative bubble.

 

Global Value: How to Spot Bubbles, Avoid Market Crashes, and Earn Big Returns in the Stock Market by Meb Faber (The Idea Farm, 2014). A synthesis of value investing and global macro approaches.

 

The Investment Checklist: The Art of In-Depth Research by Michael Shearn (Hoboken, NJ: John Wiley & Sons, 2011). How value investors undertake fundamental research.

 

The Manual of Ideas: The Proven Framework for Finding the Best Value Investments by John Mihaljevic (Hoboken, NJ: John Wiley & Sons, 2013). Presents the value investing framework of the Value Investors Club.

 

Modern Security Analysis: Understanding Wall Street Fundamentals by Martin J. Whitman and Fernando Diz (Hoboken, NJ: John Wiley & Sons, 2013). The link between fundamental security analysis and value investing.

 

The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor by Howard Marks (New York: Columbia University Press, 2013). The value investment philosophy that Marks implements at Oaktree Capital Management.

 

The Nature of Value: How to Invest in an Adaptive Economy by Nick Gogerty (New York: Columbia University Press, 2014). Presents a value creation model used by the hedge fund Bridgewater.

 

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William N. Thorndike (Boston, MA: Harvard Business School Press, 2012). Effective capital allocation as a key value investment strategy.

 

Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors by Wesley R. Gray and Tobias E. Carlisle (Hoboken, NJ: John Wiley & Sons, 2012). A synthesis of value investing, behavioural finance, and quantitative finance.

 

Security Analysis (6th edition) by Benjamin Graham and David Dodd (New York: McGraw-Hill, 2008). The influential primer on value investing.

 

Security Analysis and Business Valuation on Wall Street: A Comprehensive Guide to Today’s Valuation Methods (2nd edition) by Jeffrey C. Hooke (Hoboken, NJ: John Wiley & Sons, 2010). How Wall Street uses fundamental security analysis to value companies.

 

Security Valuation and Risk Analysis: Assessing Value in Investment Decision Making by Kenneth S. Hackel (New York: McGraw-Hill, 2011). The link between the investment process, risk management, and fundamental security valuation.

 

The Snowball: Warren Buffet and the Business of Life by Alice Schroeder (New York: Bantam Books, 2008). The authorised biography of value investor Warren Buffett.

 

Sources of Value: A Practical Guide to the Art and Science of Valuation by Simon Woolley (Cambridge: Cambridge University Press, 2009). BP’s valuation framework for analysing the economic value of companies.

 

Strategic Value Investing: Practical Techniques of Leading Value Investors by Stephen M. Horan, Robert R. Johnson, and Thomas R. Robinson (New York: McGraw-Hill, 2014). A contemporary primer on value investing and its link to corporate strategy.

 

Valuation: The Market Approach by Seth Bernstrom (Hoboken, NJ: John Wiley & Sons, 2014). Valuing firms through comparison with stock exchange and comparator company transactions.

 

Valuation: Measuring and Managing the Value of Companies (5th edition) by Tim Killer, Marc Goedhart, and David Wessels (Hoboken, NJ: John Wiley & Sons, 2010). The McKinsey valuation model for companies.

 

Value: The Four Cornerstones of Corporate Finance by Tim Koller, Richard Dobbs, and Bill Huyett (Hoboken, NJ: John Wiley & Sons, 2011). Growth, return on invested capital, and cashflow analysis in corporate finance as the foundations for valuation of companies.

 

Value Investing: From Graham to Buffett and Beyond by Bruce C.N. Greenwald, Judd Kahn, Paul D. Sonkin, and Michael van Biema (Hoboken, NJ: John Wiley & Sons, 2004). Greenwald’s value investing framework taught at the Columbia University Graduate School of Business.

 

The Value Investors: Lessons from the World’s Top Fund Managers by Ronald W. Chan (Hoboken, NJ: John Wiley & Sons, 2012). Profiles of leading fund managers who use value investing.

 

Value Maps: Valuation Tools That Unlock Business Wealth by Warren D. Miller (Hoboken, NJ: John Wiley & Sons, 2010). How tools from strategic management, industrial organisation, organisation theory, evolutionary economics, and Austrian economics can inform contemporary valuation of companies.

 

Valueable: How To Value The Best Stocks and Buy Them for Less Than They’re Worth (2nd edition) by Roger Montgomery (My 2 Cents Worth Publishing, 2010). The investment framework and experiences of Australian value investor Roger Montgomery.

 

Why Moats Matter: The Morningstar Approach to Stock Investing by Heather Brilliant and Elizabeth Collins (Hoboken, NJ: John Wiley & Sons, 2014). Morningstar’s ‘economic moats’ framework for value creation.