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Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined Hardcover – April 13 2015

4.7 out of 5 stars 105 ratings

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Product description


"Pedersen's book can be recommended to a wide spectrum of readers interested in financial markets in general and hedge funds in particular."---Jacek Klich, Central Banking

"Encyclopedic in its cataloguing of active management strategies and authoritative in its analysis of the practical issues of their implementation. Pedersen grounds his exposition in landmark scholarly articles and, where quantitative analysis is required to elucidate a concept, conveys his message without resorting to arcane mathematics."
---Martin S. Fridson, Financial Analysts Journal

"This is an interesting and stimulating book for finance scholars combining the skills of an active funds manager and educator at some of the world's premier business schools."
---Kevin Daly, Economic Record

"Despite the author's high level of understanding he manages to deliver a high quality but also easily understandable guide to the strategies."
---Mats Larsson, Investing by the Books


"This valuable and intriguing book provides a contemporary survey of investments across a wide spectrum of asset classes and strategies. Combining a wonderful narrative with a rigorous analytical structure, Efficiently Inefficient serves the needs of students, serious investors, and professionals. It is an important contribution to the investment literature."―Gary P. Brinson, CFA, GP Brinson Investments

"For a book on investments,
Efficiently Inefficient sets a completely different and higher standard. Pedersen blends the best and latest research, accessible to both MBA students and professionals, with the insights of some of the world's leading hedge fund managers. It works beautifully."―Darrell Duffie, Stanford University

Efficiently Inefficient is a truly modern and masterful introduction to how finance will be studied and practiced in the twenty-first century."―Andrei Shleifer, Harvard University

"How are markets efficient enough to stump most investors, yet inefficient enough to allow hedge fund managers to earn huge profits? Lasse Pedersen, who has contributed greatly to the 'new finance' of liquidity and financial frictions, answers this question with a tour-de-force combination of original research and provocative interviews with hedge fund managers."
―Laurence B. Siegel, CFA Institute Research Foundation

"Lasse Pedersen is a gifted financial market theorist who understands that theory is most satisfying when it is combined with a deep practical understanding of institutional detail and market frictions. This terrific book showcases his strengths in all of these dimensions."
―Jeremy Stein, Harvard University

"This accessible book explains hedge fund strategies and how to design, construct, evaluate, implement, and risk manage them. The section on securities lending and borrowing is interesting and novel, and Pedersen's discussion of macro and central bank strategies is one of the best I have seen in any book on hedge funds. His account of portfolio construction is superior."
―Robert Kosowski, Imperial College Business School

Efficiently Inefficient bridges academic finance and the practice of finance. Students will appreciate the insights of top investment managers and the sections on transactions costs and liquidity are especially valuable. I will use the book in my graduate course on investment and I highly recommend it to all those working in the investment management industry."―Campbell R. Harvey, editor of the Journal of Finance (2006–2012)

Product details

  • Publisher ‏ : ‎ Princeton University Press (April 13 2015)
  • Language ‏ : ‎ English
  • Hardcover ‏ : ‎ 368 pages
  • ISBN-10 ‏ : ‎ 0691166196
  • ISBN-13 ‏ : ‎ 978-0691166193
  • Item weight ‏ : ‎ 765 g
  • Dimensions ‏ : ‎ 16.26 x 2.79 x 24.13 cm
  • Customer Reviews:
    4.7 out of 5 stars 105 ratings

About the author

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A professor at Copenhagen Business School and New York University and a principal at AQR Capital Management, Lasse Heje Pedersen is a distinguished academic and an asset manager. He has published a number of influential research papers on asset pricing, liquidity risk, and trading strategies, which have been cited by Ben Bernanke and other central bank governors around the world and in thousands of academic and industry papers. He has won a number of awards, including the Bernácer Prize to the best E.U. economist under 40 years of age. Further, he has served in the Liquidity Working Group meeting at the Federal Reserve Bank of New York to address liquidity issues during the global financial crisis, the New York Fed's Monetary Policy Panel, the Economic Advisory Boards of NASDAQ and FTSE, as a Director of the American Finance Association, and on the editorial boards of several journals such as the Journal of Finance and Quarterly Journal of Economics. He received his B.S. and M.S. from University of Copenhagen and his Ph.D. from Stanford University.

Visit his website for additional material related to his books and research papers.

Customer reviews

4.7 out of 5 stars
4.7 out of 5
105 global ratings

Top review from Canada

Reviewed in Canada on February 8, 2016
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Top reviews from other countries

Dave K
2.0 out of 5 stars What can I say other than really it highlights liquidity spirals good or bad and nothing really more
Reviewed in the United Kingdom on August 10, 2017
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3.0 out of 5 stars Major PRINTING problems with this book- be aware
Reviewed in the United Kingdom on October 18, 2015
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Ho Yan Chan
5.0 out of 5 stars Great Book! Systematic & Well Structured
Reviewed in the United Kingdom on September 1, 2016
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5.0 out of 5 stars Five Stars
Reviewed in the United Kingdom on February 10, 2016
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Paw Kellner
5.0 out of 5 stars Five Stars
Reviewed in the United Kingdom on July 27, 2015
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