"Inside the House of Money" by Steve Drobny - Book Review

Inside the House of Money (ITHOM) is a 2006 book by Steve Drobny a former hedge fund salesperson at Deutsche Bank. I picked this title up through a series of Amazon searches to find other interesting investment and personal finance titles. In ordering this book from my local library, my expectation was that ITHOM would be a look at the world of hedge funds by Drobny with his view on their impact on the financial world. While, he does provide some insight into his view on hedge funds ITHOM is a much more interesting read in that it is a book that covers approximately 10 interviews with leading hedge fund managers.

The focus of this book is on covering different investment styles and techniques used by hedge funds that are best classified as "global macro" funds. By "global macro" the common thread is that each fund looks globally and isn't restricted to a specific country, asset (e.g., bonds, currencies, equities) or style in the pursuit of absolute returns. The macro in the title refers to a macroeconomic view or a view towards a global/broader trend that the fund is seeking to exploit. A number of the interviews stood out in my mind as being worth picking up a copy of ITHOM including:

The Pioneer - Jim Rogers = this interview alone is worth the price of admission in typical Rogers style he bluntly lays forth his views on the world and key investment opportunities. In 2006, Rogers was continuing the discussion from his last book "Hot Commodities" and his interest in China two key themes for the coming decade. Mr. Rogers, has an irreverent style that makes for easy reading and provides some interesting insights.

The Family Office - Jim Leitner - a former hedge fund manager who now runs money for his own family.

The Prop Trader - Christian Siva-Jones (Semper Macro) = former head trader for Goldman Sachs proprietary trading desk. He offers a unique look into the operations of a major proprietary trading desk and the challenges of running such an operation.

The Dot Comer - Mr. Thiel = prior to starting his firm Clarium Capital - he founded and ran Pay Pal taking the firm from start-up through to its eventual sale to eBay. An interesting article with a portfolio manager returning to his roots running an investment firm after starting a highly successful technology venture.

Overall, I would highly recommend picking up a copy of ITHOM if you're interesting in investing and the impact that hedge funds are having on the worldwide financial system. ITHOM provides the reader with a unique insight into the workings of global macro hedge funds.

Note - I had to drop the book back to the library early so this review is somewhat truncated there are some good ideas in this text that I haven't fully covered.