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 61–70 of 100
  1. 061Vornix EdTech spends Rs 12,000 to acquire a customer paying Rs 500 a month at a 30% gross margin, with 4% monthly churn, and trades at 8x sales. Build the unit economics and make the short case.Short sellingCoreCoatue ManagementNew York · 2023
  2. 062A backtest on Orlin Minerals gives a Sharpe ratio of 2.1. The price file has one duplicated day and one bad print at ten times the true price that reverts the next day. What does cleaning do to the Sharpe, and how would you catch these errors automatically?Systematic research and dataCoreSquarepoint CapitalLondon · 2026
  3. 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
  4. 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
  5. 065Your long thesis on Ruvello Textiles is that its EBITDA margin rises from 9% to 13% as cotton prices fall 15%. Cotton is 45% of revenue. What if cotton does not fall? Rebuild the margin with cotton flat and up 5%, and say what else must carry the thesis.Earnings, models and KPIsCoreApollo Global ManagementRemote · 2021
  6. 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
  7. 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
  8. 068Tarsil Pharma trades at 14x earnings while three peers trade at 20x, 22x and 24x. But 35% of Tarsil's revenue comes from one US product that loses patent protection in two years, which would cut earnings by 30%. Is Tarsil mispriced against its peers?Long pitches and valuationCorePoint72London · 2026
  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. 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

Company names and figures are illustrative.