Praise for Inside the House of Money

"Loved . . . the book—it's on my nightstand!"
—Bill Gross, Managing Director, PIMCO

"What a wonderful way to get into a macro trader's mind! I am so glad that this book exists."
—Nassim Nicholas Taleb, bestselling author of The Black Swan

"We learn from these interviews of successful global macro investors that they share a style of thinking: they consider a strikingly broad list of factors influencing markets, they are exquisitely alert to nuances of timing and place in history, and, perhaps most fundamentally, they seem to be thinking along broadly inductive rather than deductive lines."
—Prof. Robert J. Shiller, Cowles Foundation for Research in Economics, International Center for Finance, Yale University, and author of Irrational Exuberance

"The ruminations of supposedly hush-hush hedge fund operators are richly illuminating."
—The New York Times

"Useful for anyone who has entrusted their money to funds operating in the sector."
—Financial Times

"Steven Drobny has been able to do something that few others have, especially in the media: he got hedge fund managers to share their trade secrets."
—Institutional Investor

"Couldn't come at a more appropriate time . . . sheds more light than ever on the minds behind the largest global macro funds . . . reveals the intricacies of thinking like a hedge fund manager."
—Forbes

Steven Drobny is the founder and CEO of Drobny Global Asset Management, an independent investment advisory, asset management and consulting firm focused on global macro and commodity hedge fund strategies. He is also the author of The Invisible Hands: Top Hedge Fund Traders on Bubbles, Crashes, and Real Money (Wiley). Mr. Drobny holds an MSc in finance and accounting from the London School of Economics and Political Science and a BS/BA from Bucknell University. Please visit www.drobnycapital.com for more information on Drobny and this book.

Foreword by Niall Ferguson ix

Preface xi

Preface to the 2009 Edition xv

Preface to the 2006 Edition xvii

1. Introduction to Global Macro Hedge Funds: Joseph G. Nicholas (HFR Group) 1

2. The History of Global Macro Hedge Funds 5

3. The Future of Global Macro Hedge Funds 31

4. The Family Office Manager: Jim Leitner (Falcon Management) 35

5. The Prop Trader: Christian Siva-Jothy (SemperMacro) 85

6. The Treasurer: Dr. John Porter (Barclays Capital) 117

7. The Central Banker: Dr. Sushil Wadhwani (Wadhwani Asset Management) 145

8. The Dot-Commer: Peter Thiel (Clarium Capital) 165

9. The Floor Trader: Yra Harris (Praxis Trading) 183

10. The Pioneer: Jim Rogers 201

11. The Commodity Specialist: Dwight Anderson (Ospraie Management) 225

12. The Stock Operator: Scott Bessent (Bessent Capital) 253

13. The Emerging Market Specialist: Marko Dimitrijevic´ (Everest Capital) 273

14. The Fixed Income Specialists: David Gorton and Rob Standing (London Diversifi ed Fund Management) 293

15. The Currency Specialist: Anonymous 309

Conclusion 325

Appendix: A Note to Investors about Global Macro 327

Acknowledgments 329

Bibliography 331

Index 335