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 30 · filtered from 100Clear filters
  1. 072You want to short Pravit Gaming at Rs 500. Borrow costs 12% a year. You think there is a 60% chance it falls to Rs 350 within a year and a 40% chance it rises to Rs 700. Is the short worth doing, and what borrow cost would make it work?Short sellingHardLong-short equity funds
  2. 074Kalvora Cement has 20 mtpa of capacity at 70% utilisation, EBITDA of Rs 900 a tonne and an EV of Rs 9,000 crore. Management plans a 5 mtpa expansion costing Rs 6,000 crore. The stock looks cheap against replacement cost of Rs 1,200 crore per mtpa. Is it, and does the expansion create value?Long pitches and valuationHardLong-short equity fundsMulti-manager platforms
  3. 075You receive the Project Tamarind dataset of 30 anonymised columns and a target of next-day returns, to be tested on data you cannot see. Column 17 correlates 0.35 with the target in-sample. What do you suspect, how do you check it, and how do you build a model that survives the hidden test?Systematic research and dataHardPoint72new york · 2026Point72new york · 2026
  4. 089Durvel Steel cuts its guidance for EBITDA per tonne from Rs 12,000 to Rs 10,500 on volumes of 15 mt. The stock falls 8% on a market cap of Rs 40,000 crore. The sector trades at 6x EV/EBITDA. Was the fall an overreaction if the cut lasts one year, or if it is permanent?Earnings, models and KPIsHardLong-short equity fundsMulti-manager platforms
  5. 094Dhanvi Diagnostics grew revenue 30% a year for three years: 12 points organic and 18 points from acquisitions bought at 12x EBITDA with debt, while the stock trades at 25x. How much of shareholders' return came from M&A rather than the core business, and how would you judge the quality of that growth?Manager evaluation and attributionHardViking Global InvestorsNew York · 2025
  6. 095Zorvek Defence has no listed peer. Its returns regress on the market with a beta of 0.9 and on a capital goods basket with a beta of 0.6, with an R-squared of 45%. You are long Rs 20 crore. How do you hedge it, and how much risk is left?Portfolio construction and sizingHardBalyasny Asset ManagementNew York · 2026
  7. 096Birkan Capital's book is 20% net long Indian banks and 10% net short IT services. Run a stress scenario in which the rupee falls 8% and rates rise 100 basis points, using bank sensitivities of minus 1.5% per 10 basis points and IT sensitivities of plus 0.8% per 1% rupee fall. What does the book lose and which hedge helps most?Risk limits and drawdownsHardMulti-manager platforms
  8. 098Prysmic Solar's convertible bond trades at 105 with a conversion ratio of 10 shares per 100 face, the stock at Rs 9, and a delta of 0.6. How many shares do you short per bond to hedge, and what do you make or lose if the stock moves 10% either way?Volatility, options and convertiblesHardVolatility and relative value funds
  9. 099Varuni Retail earns a 25% ROIC, reinvests 60% of earnings and trades at 40x. Ostrel Metals earns an 8% ROIC, pays out everything and trades at 8x. Over ten years both multiples converge to 15x. Which stock returns more, and how sensitive is the answer to the exit multiple?Long pitches and valuationHardCoatue ManagementNew York · 2023
  10. 100Build a value factor on the Trivan universe of 12 stocks across three sectors: rank on book to price, go long the top three and short the bottom three. Then build it sector-neutral. The two versions give different returns. Why, and which would you use?Systematic research and dataHardAQR Capital ManagementNew York · 2021

Company names and figures are illustrative.