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 21–30 of 50 · filtered from 100Clear filters
  1. 037Nivaan Homes, a listings platform, has 12,000 rental listings with size, location, age, floor and days on market. Design a model to predict monthly rent: which target, which features, how do you validate it, and which feature is a leakage trap?Systematic research and dataCoreTwo SigmaNew York · 2025
  2. 040Aerolva Airlines runs at an 80% load factor with an EBIT margin of 3%. About 80% of its costs are fixed for the season. If the load factor rises to 85% at the same fares, what happens to the EBIT margin?Earnings, models and KPIsCoreLong-short equity fundsMulti-manager platforms
  3. 042Talvir Capital charges a 20% performance fee over an 8% hurdle. At a gross return of 12% on Rs 1,000 crore, what fee does it earn under a hard hurdle and under a soft hurdle with full catch-up?Fund economics, NAV and LP decisionsCoreFund of funds and allocators
  4. 044Solvika Chemicals has a specialty segment with EBITDA of Rs 300 crore and a commodity segment with EBITDA of Rs 200 crore. Peers trade at 18x and 6x respectively. Net debt is Rs 1,200 crore, there are 50 crore shares and the stock is Rs 85. Build the sum of the parts and say what closes the gap.Long pitches and valuationCoreLong-short equity fundsMulti-manager platforms
  5. 047A take-home asks you to regress 500 daily returns on the Selvara signal. You get a slope of 1.8, but three days with returns above 20% drive the fit. After winsorising at the 1st and 99th percentiles the slope is 0.4. Which do you report and why?Systematic research and dataCoreBalyasny Asset ManagementNew York · 2024
  6. 051Mandor Hotels' three-year bond trades at 82 with a 9% coupon and its shares at Rs 40. With a 25% chance of default, which instrument gives the better risk-adjusted return, and why might a credit investor and an equity investor disagree?Credit, distressed and capital structureCoreKKRNew York · 2025
  7. 052Belvanta Electricals has quarterly revenue of Rs 1,000 crore, a 35% contribution margin and Rs 200 crore of fixed costs. Consensus assumes 12% volume growth and 3% price growth; your channel checks say volume grows 8%. How big is the EBIT miss?Earnings, models and KPIsCoreLong-short equity fundsMulti-manager platforms
  8. 053Ushvin Industries, worth Rs 10,000 crore, will spin off Ushvin Chemicals, with EBITDA of Rs 300 crore against peers at 12x. Index funds holding the parent must sell the new shares. How do you trade the spin-off?Event-driven and merger arbitrageCoreEvent-driven fundsMulti-manager platforms
  9. 055Design a financial stress index for five economies, Aldora, Brevia, Corvin, Dessala and Estmar, from credit growth, the current account balance and short-term external debt to reserves. How do you normalise, weight and rank, and what are the index's weaknesses?Global macro tradesCoreBridgewater AssociatesNew York · 2026
  10. 060Ashvel Capital's 99% one-day VaR model was breached on 7 of the last 250 days, against 2.5 expected. How unlikely is that if the model is right, and what do you change?Risk limits and drawdownsCoreMulti-manager platforms

Company names and figures are illustrative.