Evidence-based guides to investing, hedge funds, behavioral finance and econophysics

41 guides Primary sources cited Updated SEP 29, 2026

Hedge funds

Side pockets in hedge funds: how they work, what they cost and what to check

How a side pocket splits the NAV, who shares in it, how fees and valuation work, how it differs from a gate, and the SEC cases behind the red flags.

5-25%

typical cap on side pockets as a share of a fund's or an investor's net assets

$160m

gap between GLG's mark on a side-pocketed coal stake and an outside valuation

Latest

Sharpe ratio: formula, a worked S&P 500 example and the limits

Investing · 12 min

Risk parity: how equal risk weights are calculated, the leverage and the 2022 losses

Investing · 12 min

Random walk theory: the math, the history and the tests that challenged it

Econophysics · 13 min

Hedge funds

Side pockets in hedge funds: how they work, what they cost and what to check

Managed futures: how CTA trend following works, its record and the ETFs

High-water mark and hurdle rate in hedge funds: worked examples in dollars

All 23 guides →

Behavioral finance

Prospect theory: Kahneman and Tversky's experiments, the value function and the fourfold pattern

Anchoring bias: how one number moves stock prices, forecasts and deals

Loss aversion: why losses hurt more than gains, with real examples

All 7 guides →

Econophysics

Random walk theory: the math, the history and the tests that challenged it

Fat tails in finance: how often markets break the bell curve

Econophysics for beginners: what happens when physicists study the stock market

All 4 guides →

Investing

Sharpe ratio: formula, a worked S&P 500 example and the limits

Risk parity: how equal risk weights are calculated, the leverage and the 2022 losses

Options explained: calls, puts and covered calls with worked examples

All 7 guides →