Investment Banks, Hedge Funds, and Private Equity

As our economy evolves, private equity groups, hedge funds, and investment banks compete and cooperate in different ways. Their recent innovations are reported and analyzed by the 3rd edition of David Stowell’s landmark book, which adds three new cases, significantly revisions of most chapters, and updated figures, tables, and exhibits. It captures the actual work that associates and vice presidents do, providing readers with templates for real transactions. Finally, it provides significantly more content about the ways liquidity is supplied in secondary markets, including an overview of high frequency trading/electronic market making, quantitative trading strategies, and the evolution of cash equities from open outcry pits to fully electronic central limit order books.

• Includes a new chapter on China to accompany nine heavily updated chapters
• Integrates three new cases with relevant chapters in the book to create real world applications of chapter teachings
• Employs spreadsheet models to enable readers to create analytical frameworks for considering choices, opportunities and risks described in the cases

MBA, MSF and Executive MBA students, and upper-level undergraduates who are focused on finance and investments. Investment banking classes can use this book as a primary text, and corporate finance and investments classes can use it either as a secondary text or as a principal text when focused on hedge funds and private equity

Part I
1. Overview of Investment Banking
2. Regulation of the Securities Industry
3. Financings
4. Mergers and Acquisitions
5. Trading
6. Asset Management, Wealth Management and Research
7. Exchanges, Clearing and Settlement and Credit Rating Agencies
8. International Banking
9. Convertible Securities and Innovation
10. Investment Banking Careers, Opportunities and Issues

Part II
11. Overview of Hedge Funds
12. Hedge Fund Investment Strategies
13. Shareholder Activism and Impact on Corporations
14. Risk, Regulation and Organizational Structure
15. Hedge Fund Performance and Issues
16. Overview of Private Equity
17. LBO Financial Model
18. Private Equity Impact on Corporations
19. Organization, Compensation, Regulation and Limited Partners
20. Private Equity Issues and Opportunities
21. Private Equity in China

Cases
1. Investment Banking in 2008 (A): Rise and Fall of the Bear
2. Investment Banking in 2008 (B): A Brave New World
3. Freeport-McMoran: Financing an Acquisition
4. The Best Deal Gillette Could Get?: Procter & Gamble’s Acquisition of Gillette
5. A Tale of Two Hedge Funds: Magnetar and Peloton
6. Kmart, Sears and ESL: How a Hedge Fund Became One of the World’s Largest Retailers
7. McDonald’s, Wendy’s and Hedge Funds-Hamburger Hedging?: Hedge Fund Activisim
8. Porsche, Volkswagen and CSX: Cars, Trains and Derivatives
9. The Toys “R” Us LBO
10. Cerberus and the U.S. Auto Industry
11. H.J. Heinz M&A Transaction
12. Quintilles IPO Transaction
13. New Case on M&A Transaction Litigation (name to be determined)