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 1–10 of 35 · filtered from 100Clear filters
  1. 002Tunevi Music adds 10,000 subscribers a month and loses 5% of its base each month, at Rs 120 per subscriber a month. What are the steady-state base and revenue run rate, and how long does it take to get halfway there?Earnings, models and KPIsCoreLong-short equity fundsMulti-manager platforms
  2. 003Orvian Tech will join a major index. Passive funds need to buy 3 crore shares, and the stock trades 20 lakh shares a day. How do you think about the price pressure and the timing of the trade?Event-driven and merger arbitrageCoreEvent-driven fundsMulti-manager platforms
  3. 004Varsana Asset Management runs Rs 5,000 crore at 1.5 and 15, with Rs 60 crore of annual costs. What does the manager earn at gross returns of 0%, 10% and 20%, and at what AUM does it break even in a flat year?Fund economics, NAV and LP decisionsCoreFund of funds and allocators
  4. 008Voltarra Power's ordinary shares trade at Rs 200 and its differential voting rights shares at Rs 110, with the same claim on profits and a slightly higher dividend. Why might the gap persist, and what would make a long DVR, short ordinary trade work?Pairs and relative valueCoreLong-short equity fundsMulti-manager platforms
  5. 009A Nesavu Capital pod has three ideas with volatilities of 20%, 35% and 50%. The PM wants each to contribute the same risk, assuming low correlation between them. How should capital be split, and how does that differ from equal weights?Portfolio construction and sizingCoreMulti-manager platformsLong-short equity funds
  6. 011Helmor Infra doubled revenue from Rs 2,000 crore to Rs 4,000 crore in three years while receivable days rose from 60 to 140 and operating cash flow fell to about 20% of EBITDA. Build the short case from the working capital.Short sellingCoreLong-short equity funds
  7. 012A card-spending panel covers about 3% of Kalyra Mart's sales. Panel spending is up 14% this quarter, and the panel skews to younger urban shoppers. How do you turn the panel into a revenue estimate, and what biases do you correct for?Systematic research and dataCoreQuant and systematic funds
  8. 013The Ushar Capital-Protected Note returns 100% of capital after three years plus 60% of any index gain. Three-year rates are 7% and a three-year at-the-money call costs 18% of notional. Decompose the note and say whether 60% participation is fair.Volatility, options and convertiblesCoreVolatility and relative value funds
  9. 014Kestava Retail bonds trade at a 450 basis point spread with leverage of 5x; Rodhan Ports bonds trade at 300 basis points with leverage of 3x. Which bond pays more per turn of leverage, and what else would you check before calling one cheap?Credit, distressed and capital structureCoreCredit and distressed funds
  10. 017Sethra Macro Fund expects the gap between 10-year and 2-year government yields to widen from 20 to 80 basis points. The 2-year has a DV01 of Rs 1.9 lakh and the 10-year Rs 7.5 lakh per Rs 100 crore of notional. How do you size a DV01-neutral steepener, and what do you make if you are right?Global macro tradesCoreGlobal macro funds

Company names and figures are illustrative.