As with investment banking there are popular books that everyone has read before getting a job on the buy-side. This is not to say you have to read these books to get a job: but most of the hedge fund community has read them. Personally, the Street of Walls team tries to read at least 1 book per month (or more) to try to stay as sharp as possible: years of knowledge are usually piled into 200 pages and are great for personal knowledge.
By far one of my favorite books of all time. Written by David Einhorn of Greenlight Capital, this is basically a long case study about Greenlight shorting Allied Capital. The book is called “Fooling Some of the People All the Time“:
The Big Short is another great read. The book is written by Michael Lewis and gives a great description of the 2007-2009 financial crisis: what went wrong and who make a bunch of money off shorting the market.
Other Street of Walls Book Lists: