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 1–6 of 6 · filtered from 100Clear filters
  1. 023Voltrail Charging wants to justify a valuation of Rs 3,000 crore. Size its market: 20 lakh electric cars in its region, 30% of charging done at public stations, 2,000 kWh charged per car a year and a margin of Rs 4 per kWh. What EBITDA pool exists, and what share must Voltrail win?Long pitches and valuationCoreLong-short equity fundsMulti-manager platforms
  2. 025Ambrel General Insurance writes Rs 8,000 crore of premium at a combined ratio of 104%, holds invested assets of Rs 10,000 crore earning 7%, has Rs 4,000 crore of equity and a 25% tax rate. The stock trades at 2.5x book. What ROE does it earn, what does the price imply, and what would change your view?Long pitches and valuationHardLong-short equity fundsMulti-manager platforms
  3. 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
  4. 044Solvika Chemicals has a specialty segment with EBITDA of Rs 300 crore and a commodity segment with EBITDA of Rs 200 crore. Peers trade at 18x and 6x respectively. Net debt is Rs 1,200 crore, there are 50 crore shares and the stock is Rs 85. Build the sum of the parts and say what closes the gap.Long pitches and valuationCoreLong-short equity fundsMulti-manager platforms
  5. 074Kalvora Cement has 20 mtpa of capacity at 70% utilisation, EBITDA of Rs 900 a tonne and an EV of Rs 9,000 crore. Management plans a 5 mtpa expansion costing Rs 6,000 crore. The stock looks cheap against replacement cost of Rs 1,200 crore per mtpa. Is it, and does the expansion create value?Long pitches and valuationHardLong-short equity fundsMulti-manager platforms
  6. 093Dinsha Jewellers grows revenue 20% a year from Rs 5,000 crore at an 8% EBIT margin, but holds 200 days of inventory, so each rupee of new revenue ties up working capital. Is the growth creating value? Compare the ROIC on incremental capital with a 12% cost of capital and a 25% tax rate, measuring inventory days on revenue.Long pitches and valuationCoreLong-short equity fundsMulti-manager platforms

Company names and figures are illustrative.