This book is written by hedge fund manager Eric Chung, the Chief Investment Officer of Lighthaven Capital, and LighthavenÕs former Chief of Staff, Catherine Smith. It introduces Lighthaven CapitalÕs world-class long-short equity investment strategy. This strategy has yielded the impressive results of the Lighthaven Fund that can be found at: www.lighthavencapital.com.
ÒThe Long and the Short of ItÓ teaches readers about concepts and methods that are essential to investing. Topics include: idea generation, screening financial fundamentals, due diligence, quantitative analysis, qualitative analysis, scuttlebutt interviews, LighthavenÕs approach to company valuation, critical thinking, avoiding mental errors, making good decisions, entering the market, monitoring investments, and assessing whether to exit. In addition, the appendices provide insight into some of the web-based tools and analytical frameworks that Lighthaven uses to research and evaluate investment candidates.
In this second edition of the book are three new chapters that discuss the following: LighthavenÕs concept of market modes; LighthavenÕs parachute plan; and LighthavenÕs view on volatility, risk, and the three most important risk questions.