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 41–50 of 69 · filtered from 100Clear filters
  1. 054The Nirvara Cat III AIF earns 18% before tax. At an illustrative 30% effective tax paid inside the fund, against 15% paid by investors on their own gains, how different are the net returns, and why do Indian long-short managers care so much about structure?Fund economics, NAV and LP decisionsWarm upCategory III AIFsFund of funds and allocators
  2. 057Ambeth Fund and Corlane Fund both returned 12% last year. Ambeth had 8% volatility and a beta of 0.2; Corlane had 15% volatility and a beta of 0.9. The market returned 10% and cash 6%. Which manager showed more skill?Manager evaluation and attributionWarm upFund of funds and allocatorsMulti-manager platforms
  3. 058Ravira Holdings owns 40% of listed Ravira Motors, worth Rs 20,000 crore in total, has net debt of Rs 500 crore and no other assets, and a market value of Rs 5,000 crore. What is the holding company discount, and how would you trade it?Pairs and relative valueWarm upLong-short equity fundsMulti-manager platforms
  4. 059Vetrin Partners starts a quarter with Rs 100 crore long and Rs 100 crore short on Rs 100 crore of capital. Longs rise 20% and shorts rise 30%. What are the new gross and net exposures, and what must the PM do to get back to target?Portfolio construction and sizingWarm upMulti-manager platformsLong-short equity funds
  5. 060Ashvel Capital's 99% one-day VaR model was breached on 7 of the last 250 days, against 2.5 expected. How unlikely is that if the model is right, and what do you change?Risk limits and drawdownsCoreMulti-manager platforms
  6. 063Ferrin Vol Fund sells one-month at-the-money index straddles every month at 16% implied volatility, while realised volatility averages 12%. Roughly what does it earn in a normal month, and what happens in a month when the index moves 12%?Volatility, options and convertiblesCoreVolatility and relative value funds
  7. 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
  8. 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
  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. 071A pod holds three longs of 4% of NAV each, Kalinda Paints, Rasvi Tyres and Orbel Chemicals, all helped by falling crude, with pairwise correlation of 0.8 and 30% volatility each. How many independent bets is that really, and what is the combined risk?Portfolio construction and sizingCoreMulti-manager platformsLong-short equity funds

Company names and figures are illustrative.