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 31–40 of 100
  1. 031Oskari Auto Components trades at Rs 420. Your one-week case gives a bear value of Rs 300 (30% chance), a base of Rs 480 (50%) and a bull of Rs 650 (20%). What is the probability-weighted value, what is the skew, and is this a long you size up or down?Long pitches and valuationWarm upLong-short equity fundsMulti-manager platforms
  2. 032The stock you pitched in a case competition, Selvora Chemicals, fell 22% in the six months after. The market fell 5%, the chemicals sector 8%, and Selvora's beta to the sector is 1.1. How much of the fall was your thesis, and how do you talk about it in an interview?Manager evaluation and attributionCorePoint72New York · 2026
  3. 033Two private banks, Sarvodh and Nimbal, usually trade 1.2x apart on price to book, with a standard deviation of 0.2x. Today the gap is 1.6x and the spread's half-life is about 60 days. Analyse the trade: entry, sizing, stop and what you expect to make.Pairs and relative valueCoreLong-short equity fundsMulti-manager platforms
  4. 034Kithara Long-Short Fund runs Rs 105 crore of longs with an average beta of 1.1 and Rs 95 crore of shorts with an average beta of 1.3, on Rs 100 crore of capital. What are its gross, net and beta-adjusted net exposures, and what happens if the market falls 10%?Portfolio construction and sizingWarm upMulti-manager platformsLong-short equity funds
  5. 035A PM on the Hallorin Platform manages Rs 500 crore. At minus 5% for the year, capital is cut in half; at minus 7.5% the PM is stopped out. After the cut, what return must the PM earn on the smaller book to get back to flat, and how much more can be lost before the stop?Risk limits and drawdownsCoreMulti-manager platforms
  6. 036Telora Print Media trades at 6x earnings. Print revenue of Rs 1,000 crore falls 8% a year, 70% of costs are fixed and the EBIT margin is 15%. Show why the stock may be a value trap by projecting EBIT for three years.Short sellingCoreLong-short equity funds
  7. 037Nivaan Homes, a listings platform, has 12,000 rental listings with size, location, age, floor and days on market. Design a model to predict monthly rent: which target, which features, how do you validate it, and which feature is a leakage trap?Systematic research and dataCoreTwo SigmaNew York · 2025
  8. 038A family holds a large stake in Jharna Textiles at Rs 400. A one-year put at Rs 360 costs Rs 20, and a one-year call at Rs 460 can be sold for Rs 20. Compare protecting the stake with the put alone and with a zero-cost collar.Volatility, options and convertiblesWarm upVolatility and relative value funds
  9. 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
  10. 040Aerolva Airlines runs at an 80% load factor with an EBIT margin of 3%. About 80% of its costs are fixed for the season. If the load factor rises to 85% at the same fares, what happens to the EBIT margin?Earnings, models and KPIsCoreLong-short equity fundsMulti-manager platforms

Company names and figures are illustrative.