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 1–10 of 31 · filtered from 100Clear filters
  1. 006Harvel Paints has revenue of Rs 2,400 crore and a 12% EBIT margin, with crude-linked raw materials at 55% of revenue. Your thesis is that raw material prices fall 10% and Harvel keeps half the saving. What happens to EBIT, and how much must it keep for a 15% upgrade?Long pitches and valuationWarm upMillennium ManagementNew York · 2024
  2. 010A Selvik Quant strategy earns gross alpha of 8% a year but turns over its book 20 times a year at 15 basis points a side. Halving turnover would cut gross alpha to 6%. Which version is better after costs?Risk limits and drawdownsWarm upMan GroupBoston · 2022
  3. 018Mervaan Foods, a consumer staple, trades at 35x earnings against a five-year average of 45x. Earnings grow 12% a year and the dividend yield is 1.5%. If the multiple recovers only to 40x over three years, what annual return does the stock offer, and what if it stays at 35x?Long pitches and valuationCoreBalyasny Asset ManagementNew York · 2024
  4. 022In a timed data exercise you get 5,000 stock-days with 40 features and must build a predictor of next-day returns. Your model has an in-sample R-squared of 4% and an out-of-sample R-squared of 0.5%. What happened, how do you present it to the researcher, and what would you try next?Systematic research and dataHardSquarepoint CapitalParis · 2025Squarepoint CapitalParis · 2025
  5. 028Stellan Pharma offers 0.5 of its shares for each Moravi Labs share. Stellan trades at Rs 800 and Moravi at Rs 370, and Moravi would fall to Rs 280 if the deal broke. What is the spread, how do you hedge it, and what completion chance is the market pricing?Event-driven and merger arbitrageCoreAQR Capital ManagementGreenwich · 2021
  6. 029Build the month-end NAV for Ovelle Partners from gross assets of Rs 1,050 crore, a prime broker loan, accrued fees and redemptions payable, with 9.9 crore units in issue. What is the NAV per unit?Fund economics, NAV and LP decisionsCoreMan GroupBoston · 2019
  7. 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
  8. 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
  9. 041Tavrin Logistics (EPS Rs 40, P/E 20, 10 crore shares) buys Coastel Freight, which earns Rs 80 crore, for Rs 1,200 crore, paid half in new Tavrin shares and half in debt at 8% pre-tax with a 25% tax rate. Is the deal accretive, and how would you expect Tavrin's shares to trade on the news?Event-driven and merger arbitrageHardPoint72New York · 2025
  10. 047A take-home asks you to regress 500 daily returns on the Selvara signal. You get a slope of 1.8, but three days with returns above 20% drive the fit. After winsorising at the 1st and 99th percentiles the slope is 0.4. Which do you report and why?Systematic research and dataCoreBalyasny Asset ManagementNew York · 2024

Company names and figures are illustrative.