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 31–35 of 35 · filtered from 100Clear filters
  1. 090Tolvan Cement bids for Ondari Cement at a fixed ratio of 0.8 Tolvan shares while Tolvan trades between Rs 450 and Rs 550, with the value fixed at Rs 360 or Rs 440 outside that range. Map Ondari's deal value against Tolvan's price and say how the hedge changes across the range.Event-driven and merger arbitrageCoreEvent-driven fundsMulti-manager platforms
  2. 091The Cendra Absolute Return Fund manages Rs 2,000 crore. Investors ask to redeem 30%, but a 20% quarterly gate applies. 60% of the book can be sold in five days and the rest takes a month. How do you meet the redemptions, and what does the gate protect?Fund economics, NAV and LP decisionsCoreFund of funds and allocators
  3. 092Calderra's 10-year nominal bond yields 7.0% and its inflation-linked bond 2.5%. You expect inflation to average 5%. What is breakeven inflation, what trade expresses your view, and what do you make if inflation averages 5.5%?Global macro tradesCoreGlobal macro funds
  4. 093Dinsha Jewellers grows revenue 20% a year from Rs 5,000 crore at an 8% EBIT margin, but holds 200 days of inventory, so each rupee of new revenue ties up working capital. Is the growth creating value? Compare the ROIC on incremental capital with a 12% cost of capital and a 25% tax rate, measuring inventory days on revenue.Long pitches and valuationCoreLong-short equity fundsMulti-manager platforms
  5. 097The Qadira value backtest uses book value from annual reports dated to the fiscal year-end, although reports appear about 60 days later. The backtest earns 11% a year. What bias is this, how does it inflate returns, and how do you fix it?Systematic research and dataCoreQuant and systematic funds

Company names and figures are illustrative.