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 51–60 of 100
  1. 051Mandor Hotels' three-year bond trades at 82 with a 9% coupon and its shares at Rs 40. With a 25% chance of default, which instrument gives the better risk-adjusted return, and why might a credit investor and an equity investor disagree?Credit, distressed and capital structureCoreKKRNew York · 2025
  2. 052Belvanta Electricals has quarterly revenue of Rs 1,000 crore, a 35% contribution margin and Rs 200 crore of fixed costs. Consensus assumes 12% volume growth and 3% price growth; your channel checks say volume grows 8%. How big is the EBIT miss?Earnings, models and KPIsCoreLong-short equity fundsMulti-manager platforms
  3. 053Ushvin Industries, worth Rs 10,000 crore, will spin off Ushvin Chemicals, with EBITDA of Rs 300 crore against peers at 12x. Index funds holding the parent must sell the new shares. How do you trade the spin-off?Event-driven and merger arbitrageCoreEvent-driven fundsMulti-manager platforms
  4. 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
  5. 055Design a financial stress index for five economies, Aldora, Brevia, Corvin, Dessala and Estmar, from credit growth, the current account balance and short-term external debt to reserves. How do you normalise, weight and rank, and what are the index's weaknesses?Global macro tradesCoreBridgewater AssociatesNew York · 2026
  6. 056You have two minutes to pitch Corvane Logistics, at Rs 240 with EPS of Rs 12, EPS growth of 18% a year for three years and peers at 25x. Build the pitch: the one-line thesis, the three numbers, the value and the one risk that would change your mind.Long pitches and valuationWarm upPoint72central · 2025Man GroupLondon · 2016
  7. 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
  8. 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
  9. 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
  10. 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

Company names and figures are illustrative.