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 11 · filtered from 100Clear filters
  1. 022In a timed data exercise you get 5,000 stock-days with 40 features and must build a predictor of next-day returns. Your model has an in-sample R-squared of 4% and an out-of-sample R-squared of 0.5%. What happened, how do you present it to the researcher, and what would you try next?Systematic research and dataHardSquarepoint CapitalParis · 2025Squarepoint CapitalParis · 2025
  2. 041Tavrin Logistics (EPS Rs 40, P/E 20, 10 crore shares) buys Coastel Freight, which earns Rs 80 crore, for Rs 1,200 crore, paid half in new Tavrin shares and half in debt at 8% pre-tax with a 25% tax rate. Is the deal accretive, and how would you expect Tavrin's shares to trade on the news?Event-driven and merger arbitrageHardPoint72New York · 2025
  3. 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
  4. 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
  5. 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
  6. 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
  7. 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
  8. 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
  9. 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
  10. 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

Company names and figures are illustrative.