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 30 · filtered from 100Clear filters
  1. 045Oruvel Capital has five ideas with expected alphas of 6%, 8%, 4%, 10% and 5% and volatilities of 25%, 40%, 20%, 50% and 30%. Size each in proportion to alpha divided by variance, with a cap of 8% of NAV. What is the ranking and where does the cap bind?Portfolio construction and sizingHardMulti-manager platformsLong-short equity funds
  2. 046Trevon Capital runs a long-short book at 400% gross on Rs 100 crore of equity, with a prime broker requiring equity of at least 25% of gross. Longs and shorts are equal. How far can longs fall with shorts flat before a margin call, and what happens if longs fall while shorts rise?Risk limits and drawdownsHardMulti-manager platforms
  3. 048The Sethu 50 index has implied volatility of 15%, while its members' average implied volatility is 25%. What average correlation does that imply, and how would you trade a view that realised correlation will be lower?Volatility, options and convertiblesHardVolatility and relative value funds
  4. 049Quillon Software, an Indian SaaS company, has revenue of Rs 800 crore growing 25% a year and an EBITDA margin of 18% that management says reaches 28% by year three. It trades at 6x EV/sales (EV Rs 4,800 crore) against peers at 5x. Pitch it: what do year-three EBITDA and a 25x exit multiple imply for the return, and what has to go right?Long pitches and valuationHardMillennium ManagementNew York · 2023
  5. 050Rank four businesses from best to worst investment in one hour with quick maths: Palvin Pipes (ROIC 15%, growth 10%, P/E 18), Serik Software (ROIC 40%, growth 20%, P/E 45), Morvanti Hotels (ROIC 7%, growth 8%, P/E 30), Juvara Dairy (ROIC 18%, growth 6%, P/E 14). Use earnings yield plus growth adjusted for reinvestment.Long pitches and valuationHardViking Global InvestorsNew York · 2025
  6. 064Calmor Steel is in insolvency with admitted claims of Rs 10,000 crore, Rs 8,500 crore financial and Rs 1,500 crore operational. A resolution plan offers Rs 4,000 crore against a liquidation value of Rs 3,000 crore. How might the proceeds be split, and what would a distressed buyer pay for the financial claims?Credit, distressed and capital structureHardCredit and distressed funds
  7. 066Nalvar Infotech will buy back 5% of its shares at Rs 1,500 through a tender offer while the stock trades at Rs 1,380. If 60% of shares are tendered and unaccepted shares fall back to Rs 1,350, what do you make tendering 1,000 shares?Event-driven and merger arbitrageHardEvent-driven fundsMulti-manager platforms
  8. 067You hold a Rs 50 crore LP stake in Tamrit Capital, which charges 2 and 20 and is 15% below its high-water mark. You expect gross returns of 12% a year. What is the stake worth to you, and to a buyer, given the fee holiday until the mark is regained?Fund economics, NAV and LP decisionsHardBaupost GroupBoston · 2018Baupost GroupBoston · 2018Baupost GroupBoston · 2018
  9. 069The Rivanta pod beat its benchmark by 2%. It overweighted banks (30% against 20%) and underweighted IT (10% against 25%), with its own stock returns in each sector given. Split the excess return into allocation and selection effects.Manager evaluation and attributionHardFund of funds and allocatorsMulti-manager platforms
  10. 070In quick delivery, Swiftora's share is heading from 45% to 55% with contribution margin up 3 points, while Kartlo's falls from 30% to 20% with margin down 5 points. Build the long Swiftora, short Kartlo pair: sizing, what it earns if the thesis plays out, and what happens if the whole sector falls 20%.Pairs and relative valueHardCoatue ManagementNew York · 2014

Company names and figures are illustrative.