Hedge Funds case studies, worked step by step

Cases
100
Traced to a firm
31
Topics
13
Hard
30
Topic
All topicsCredit, distressed and capital structure7Earnings, models and KPIs8Event-driven and merger arbitrage7Fund economics, NAV and LP decisions8Global macro trades7Long pitches and valuation14Manager evaluation and attribution7Pairs and relative value5Portfolio construction and sizing7Risk limits and drawdowns7Short selling6Systematic research and data11Volatility, options and convertibles6
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 11–20 of 50 · filtered from 100Clear filters
  1. 018Mervaan Foods, a consumer staple, trades at 35x earnings against a five-year average of 45x. Earnings grow 12% a year and the dividend yield is 1.5%. If the multiple recovers only to 40x over three years, what annual return does the stock offer, and what if it stays at 35x?Long pitches and valuationCoreBalyasny Asset ManagementNew York · 2024
  2. 020Dhoran Capital is long Rs 100 crore of stocks with a beta of 1.0 and short Rs 80 crore of an index basket. In a sell-off the index falls 10%, but the longs fall 14%. What does the book lose, what did the beta model predict, and what failed?Risk limits and drawdownsCoreMulti-manager platforms
  3. 023Voltrail Charging wants to justify a valuation of Rs 3,000 crore. Size its market: 20 lakh electric cars in its region, 30% of charging done at public stations, 2,000 kWh charged per car a year and a margin of Rs 4 per kWh. What EBITDA pool exists, and what share must Voltrail win?Long pitches and valuationCoreLong-short equity fundsMulti-manager platforms
  4. 028Stellan Pharma offers 0.5 of its shares for each Moravi Labs share. Stellan trades at Rs 800 and Moravi at Rs 370, and Moravi would fall to Rs 280 if the deal broke. What is the spread, how do you hedge it, and what completion chance is the market pricing?Event-driven and merger arbitrageCoreAQR Capital ManagementGreenwich · 2021
  5. 029Build the month-end NAV for Ovelle Partners from gross assets of Rs 1,050 crore, a prime broker loan, accrued fees and redemptions payable, with 9.9 crore units in issue. What is the NAV per unit?Fund economics, NAV and LP decisionsCoreMan GroupBoston · 2019
  6. 030Pelagia imports oil worth 4% of GDP and runs a current account deficit of 2% of GDP. Oil prices rise 30%. What happens to the deficit, the currency and the rates market, and what trade would you put on?Global macro tradesCoreGlobal macro funds
  7. 032The stock you pitched in a case competition, Selvora Chemicals, fell 22% in the six months after. The market fell 5%, the chemicals sector 8%, and Selvora's beta to the sector is 1.1. How much of the fall was your thesis, and how do you talk about it in an interview?Manager evaluation and attributionCorePoint72New York · 2026
  8. 033Two private banks, Sarvodh and Nimbal, usually trade 1.2x apart on price to book, with a standard deviation of 0.2x. Today the gap is 1.6x and the spread's half-life is about 60 days. Analyse the trade: entry, sizing, stop and what you expect to make.Pairs and relative valueCoreLong-short equity fundsMulti-manager platforms
  9. 035A PM on the Hallorin Platform manages Rs 500 crore. At minus 5% for the year, capital is cut in half; at minus 7.5% the PM is stopped out. After the cut, what return must the PM earn on the smaller book to get back to flat, and how much more can be lost before the stop?Risk limits and drawdownsCoreMulti-manager platforms
  10. 036Telora Print Media trades at 6x earnings. Print revenue of Rs 1,000 crore falls 8% a year, 70% of costs are fixed and the EBIT margin is 15%. Show why the stock may be a value trap by projecting EBIT for three years.Short sellingCoreLong-short equity funds

Company names and figures are illustrative.