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 1–7 of 7 · filtered from 100Clear filters
  1. 003Orvian Tech will join a major index. Passive funds need to buy 3 crore shares, and the stock trades 20 lakh shares a day. How do you think about the price pressure and the timing of the trade?Event-driven and merger arbitrageCoreEvent-driven fundsMulti-manager platforms
  2. 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
  3. 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
  4. 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
  5. 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
  6. 078Samvara Telecom announces a rights issue of 1 new share for every 4 held at Rs 60, with the stock at Rs 100. What is the theoretical ex-rights price, what is each right worth, and what should a holder who does not want to invest do?Event-driven and merger arbitrageWarm upEvent-driven fundsMulti-manager platforms
  7. 090Tolvan Cement bids for Ondari Cement at a fixed ratio of 0.8 Tolvan shares while Tolvan trades between Rs 450 and Rs 550, with the value fixed at Rs 360 or Rs 440 outside that range. Map Ondari's deal value against Tolvan's price and say how the hedge changes across the range.Event-driven and merger arbitrageCoreEvent-driven fundsMulti-manager platforms

Company names and figures are illustrative.