--- product_id: 13945952 title: "Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined" price: "447.88 DT" currency: TND in_stock: true reviews_count: 13 url: https://www.desertcart.tn/products/13945952-efficiently-inefficient-how-smart-money-invests-and-market-prices-are store_origin: TN region: Tunisia --- # Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined **Price:** 447.88 DT **Availability:** ✅ In Stock ## Quick Answers - **What is this?** Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined - **How much does it cost?** 447.88 DT with free shipping - **Is it available?** Yes, in stock and ready to ship - **Where can I buy it?** [www.desertcart.tn](https://www.desertcart.tn/products/13945952-efficiently-inefficient-how-smart-money-invests-and-market-prices-are) ## Best For - Customers looking for quality international products ## Why This Product - Free international shipping included - Worldwide delivery with tracking - 15-day hassle-free returns ## Description Financial market behavior and key trading strategies―illuminated by interviews with top hedge fund experts Efficiently Inefficient describes the key trading strategies used by hedge funds and demystifies the secret world of active investing. Leading financial economist Lasse Heje Pedersen combines the latest research with real-world examples and interviews with top hedge fund managers to show how certain trading strategies make money―and why they sometimes don't. Pedersen views markets as neither perfectly efficient nor completely inefficient. Rather, they are inefficient enough that money managers can be compensated for their costs through the profits of their trading strategies and efficient enough that the profits after costs do not encourage additional active investing. Understanding how to trade in this efficiently inefficient market provides a new, engaging way to learn finance. Pedersen analyzes how the market price of stocks and bonds can differ from the model price, leading to new perspectives on the relationship between trading results and finance theory. He explores several different areas in depth―fundamental tools for investment management, equity strategies, macro strategies, and arbitrage strategies―and he looks at such diverse topics as portfolio choice, risk management, equity valuation, and yield curve logic. The book’s strategies are illuminated further by interviews with leading hedge fund managers: Lee Ainslie, Cliff Asness, Jim Chanos, Ken Griffin, David Harding, John Paulson, Myron Scholes, and George Soros. Efficiently Inefficient effectively demonstrates how financial markets really work. Free problem sets are available online at http://www.lhpedersen.com Review: Efficiently Efficient in Explaning Smart Beta and Other Strategies . . . - Efficiently Inefficient breaks down the primary ways by which hedge funds (and conventional money managers) attempt to generate positive returns for their investors. It provides an overview of the hedge fund industry by going into the mechanics of the industry and then follows with detailed descriptions of the different strategies employed. Immediately after the Table of Contents, the author provides the gist of the book in three simple tables. These tables provide a very efficient overview of the main topics in each section of the book. In a nutshell the book could be outlined as: Part I This section has five chapters which provide an overview of the theoretical aspects of investing. It covers an overview of the hedge fund industry in chapter one followed by a brief explanations of the “greek” alphabet of performance measurement in chapter two. The remaining chapters discuss issues in back-testing, perspectives on risk management followed by discussion of trading costs and leverage. Part II Part II of the book discusses the three primary equity strategies which the author has broken down as Discretionary Equity Trading, Dedicated Short Bias and Quantitative Equity Investing. This book outlines the theoretical principles of each of these primary strategies and ends each respective chapter with an interview with a respected practitioner of the strategy. Discretionary Equity investing is what would probably be familiar to most investors. It is the Graham & Dodd realm of investing. The next chapter on Dedicated Short bias gets into the thesis, details and complications of short selling and ends with an interview with noted short seller James Chanos. The final chapter in this section gets into Quantitative Equity investing. Arguably, this is the chapter that hones in on what has been in the investing limelight in recent years as it discusses investing in factors such as value, momentum, size and volatility as well as statistical arbitrage. A lot of the material in this chapter relates to the recent interest in “smart beta.” The interview that concludes this chapter is with Cliff Asness whose firm is also the author’s employer and one of the leaders in creating smart beta products. Part III This section of the book gets beyond the realm of equity security selection into larger asset allocation picture. Included here is a chapter on Global Macro Investing which ends with an interview with arguably the most famous global macro manager ever, George Soros. A chapter on managed futures follows with discussions of trend-focused analysis and an interview with David Harding of Winton Capital. Part IV The final section of the book has separate chapters on Fixed-Income Arbitrage, Convertible Bond Arbitrage and a final chapter on Event-Driven Arbitrage. As with the other chapters, each ends with an interview with a noted practitioner of each respective strategy. In these chapters, the author interviews Nobel Laureate Myron Scholes, hedge fund managers Ken Griffin and John Paulson. Pedersen’s book could be used as a supplementary text for a college or MBA program but it does not read pedantically like a college text book. While some math appears, it is kept to a decent minimum. The clear and concise discussion of the theoretical basis for each strategy is followed nicely by an interview with a practitioner in that space. The interviews do follow in the spirit of books by John Train and Jack Schwager (albeit briefer) and help in providing color to each chapter. Arguably Pedersen’s work provides an efficient and very readable survey on the state of the investing environment today. Review: Get a Better Understanding of Smart Money Built on Both Specialization and Scale - Lasse Pedersen elegantly introduces “Efficiently Inefficient” to his audience by articulating the three themes of his book in three simple tables. Table I aims to demonstrates that financial markets are neither efficient nor inefficient, but efficiently inefficient. Financial markets are efficiently inefficient because they allow some money managers to outperform the market on behalf of their investors after fees. Table II subdivides the different trading strategies that smart money, including hedge funds, uses to capitalize on the efficiently inefficient nature of financial markets. These strategies can be subdivided at a high level into equity strategies, macro strategies, and arbitrage strategies. Table III covers the different investment styles and their systematic implementation. The different investment styles can be reduced to some version of value investing and momentum investing. Mr. Pedersen usually strikes the right balance between his prose and the more technical aspects of active investment, equity strategies, asset allocation and macro strategies, and arbitrage strategies. The interviews that the author has conducted with hedge fund gurus such as James Chanos, George Soros, and John Paulson add some additional color to the different levered trading strategies in which they tend to specialize. In summary, “Efficiently Inefficient” can be easily ranked among the best books out there that focus on hedge funds and their respective modus operandi used to outperform the other market players. ## Technical Specifications | Specification | Value | |---------------|-------| | Best Sellers Rank | #427,013 in Books ( See Top 100 in Books ) #52 in Economic Theory (Books) #74 in Investment Portfolio Management #114 in Theory of Economics | | Customer Reviews | 4.6 out of 5 stars 226 Reviews | ## Images ![Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined - Image 1](https://m.media-amazon.com/images/I/71gAz5n9vzL.jpg) ## Customer Reviews ### ⭐⭐⭐⭐⭐ Efficiently Efficient in Explaning Smart Beta and Other Strategies . . . *by D***N on April 12, 2015* Efficiently Inefficient breaks down the primary ways by which hedge funds (and conventional money managers) attempt to generate positive returns for their investors. It provides an overview of the hedge fund industry by going into the mechanics of the industry and then follows with detailed descriptions of the different strategies employed. Immediately after the Table of Contents, the author provides the gist of the book in three simple tables. These tables provide a very efficient overview of the main topics in each section of the book. In a nutshell the book could be outlined as: Part I This section has five chapters which provide an overview of the theoretical aspects of investing. It covers an overview of the hedge fund industry in chapter one followed by a brief explanations of the “greek” alphabet of performance measurement in chapter two. The remaining chapters discuss issues in back-testing, perspectives on risk management followed by discussion of trading costs and leverage. Part II Part II of the book discusses the three primary equity strategies which the author has broken down as Discretionary Equity Trading, Dedicated Short Bias and Quantitative Equity Investing. This book outlines the theoretical principles of each of these primary strategies and ends each respective chapter with an interview with a respected practitioner of the strategy. Discretionary Equity investing is what would probably be familiar to most investors. It is the Graham & Dodd realm of investing. The next chapter on Dedicated Short bias gets into the thesis, details and complications of short selling and ends with an interview with noted short seller James Chanos. The final chapter in this section gets into Quantitative Equity investing. Arguably, this is the chapter that hones in on what has been in the investing limelight in recent years as it discusses investing in factors such as value, momentum, size and volatility as well as statistical arbitrage. A lot of the material in this chapter relates to the recent interest in “smart beta.” The interview that concludes this chapter is with Cliff Asness whose firm is also the author’s employer and one of the leaders in creating smart beta products. Part III This section of the book gets beyond the realm of equity security selection into larger asset allocation picture. Included here is a chapter on Global Macro Investing which ends with an interview with arguably the most famous global macro manager ever, George Soros. A chapter on managed futures follows with discussions of trend-focused analysis and an interview with David Harding of Winton Capital. Part IV The final section of the book has separate chapters on Fixed-Income Arbitrage, Convertible Bond Arbitrage and a final chapter on Event-Driven Arbitrage. As with the other chapters, each ends with an interview with a noted practitioner of each respective strategy. In these chapters, the author interviews Nobel Laureate Myron Scholes, hedge fund managers Ken Griffin and John Paulson. Pedersen’s book could be used as a supplementary text for a college or MBA program but it does not read pedantically like a college text book. While some math appears, it is kept to a decent minimum. The clear and concise discussion of the theoretical basis for each strategy is followed nicely by an interview with a practitioner in that space. The interviews do follow in the spirit of books by John Train and Jack Schwager (albeit briefer) and help in providing color to each chapter. Arguably Pedersen’s work provides an efficient and very readable survey on the state of the investing environment today. ### ⭐⭐⭐⭐⭐ Get a Better Understanding of Smart Money Built on Both Specialization and Scale *by S***E on July 11, 2015* Lasse Pedersen elegantly introduces “Efficiently Inefficient” to his audience by articulating the three themes of his book in three simple tables. Table I aims to demonstrates that financial markets are neither efficient nor inefficient, but efficiently inefficient. Financial markets are efficiently inefficient because they allow some money managers to outperform the market on behalf of their investors after fees. Table II subdivides the different trading strategies that smart money, including hedge funds, uses to capitalize on the efficiently inefficient nature of financial markets. These strategies can be subdivided at a high level into equity strategies, macro strategies, and arbitrage strategies. Table III covers the different investment styles and their systematic implementation. The different investment styles can be reduced to some version of value investing and momentum investing. Mr. Pedersen usually strikes the right balance between his prose and the more technical aspects of active investment, equity strategies, asset allocation and macro strategies, and arbitrage strategies. The interviews that the author has conducted with hedge fund gurus such as James Chanos, George Soros, and John Paulson add some additional color to the different levered trading strategies in which they tend to specialize. In summary, “Efficiently Inefficient” can be easily ranked among the best books out there that focus on hedge funds and their respective modus operandi used to outperform the other market players. ### ⭐⭐⭐⭐⭐ A new framework for understanding actively managed funds *by H***K on May 3, 2015* Lasse has produced a wonderful book on the central issue of market efficiency and active investment management. Academic evidence accumulated during the past 50 years strongly supports the concept of market efficiency. It is true that we observe examples of market inefficiency and academic research has identified a number of anomalies, but overwhelming evidence points to near efficiency of markets. If investors are rational enough to create efficient markets, how could they be so irrational in chasing after hedge fund managers who promise to beat the market? Lasse has a simple solution: Market are just efficient enough to make it possible for a limited number of active managers to beat the market, but not too inefficient to attract too much money. Building on this framework, Lesse discusses various investment strategies and examines sources of returns to hedge funds -- not how smart the hedge fund manager is -- namely taking risks that other market participants are not willing to take. Any who is interested in gaining a better understanding of the financial markets and investment strategies will find the book useful. Some knowledge of finance theory and economics will be needed to really benefit from this book. --- ## Why Shop on Desertcart? - 🛒 **Trusted by 1.3+ Million Shoppers** — Serving international shoppers since 2016 - 🌍 **Shop Globally** — Access 737+ million products across 21 categories - 💰 **No Hidden Fees** — All customs, duties, and taxes included in the price - 🔄 **15-Day Free Returns** — Hassle-free returns (30 days for PRO members) - 🔒 **Secure Payments** — Trusted payment options with buyer protection - ⭐ **TrustPilot Rated 4.5/5** — Based on 8,000+ happy customer reviews **Shop now:** [https://www.desertcart.tn/products/13945952-efficiently-inefficient-how-smart-money-invests-and-market-prices-are](https://www.desertcart.tn/products/13945952-efficiently-inefficient-how-smart-money-invests-and-market-prices-are) --- *Product available on Desertcart Tunisia* *Store origin: TN* *Last updated: 2026-08-16*