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 1–2 of 2 · filtered from 100Clear filters
  1. 039Ovrin Chemicals' bonds trade at a 600 basis point spread, which with 40% recovery implies about a 10% annual chance of default. Its equity trades at 8x EBITDA, which looks healthy. One market is wrong. Set out the assumptions, build the capital structure trade and say how you size the two legs.Credit, distressed and capital structureHardCredit and distressed funds
  2. 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

Company names and figures are illustrative.