Portfolio Management case studies, worked step by step

Cases
100
Traced to a firm
50
Topics
13
Hard
30
Topic
All topicsStock pitch and thesis defence11Fixed income, credit and LDI11Strategic and tactical allocation7Factor investing and quant6Company analysis and valuation7Performance evaluation and manager selection7Client mandates and IPS8Risk management and limit breaches8Rebalancing, implementation and costs7Real assets and private markets8Portfolio construction and optimisation7Macro and multi-asset scenarios7Asset management business and products6
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 71–80 of 100
  1. 071The market values a refiner at 5 times current EBITDA, earned at a refining margin of 12 dollars a barrel. Your variant view uses a mid-cycle margin of 7 dollars. Work out EBITDA at both margins and defend the multiple you would apply.Company analysis and valuationHardFranklin TempletonSan Mateo · 2024Franklin TempletonSan Mateo · 2024
  2. 072An endowment of Rs 3,000 crore wants 10% of NAV in private equity within five years. Capital is called 25%, 35%, 25% and 15% over four years and distributions start in year four. How much must it commit each year to reach Rs 300 crore of NAV?Real assets and private marketsCorePension and endowment investingPrivate markets
  3. 073The central bank hikes 100 basis points when 25 was expected. Two-year yields rise 80 basis points, ten-year yields 30, the currency 3% and equities fall 6%. How would a macro fund have expressed the view in advance, and how would it size the trade on Rs 500 crore at an 8% volatility target?Macro and multi-asset scenariosHardMacroHedge funds
  4. 074A portfolio management service charges 1% a year plus 15% of returns above a 10% hurdle, with a high-water mark. A Rs 1 crore client earns plus 30%, minus 20% and plus 25% before fees. Work out the fees each year and compare the client's outcome with a flat 2% fee.Asset management business and productsCoreIndian wealth managementAsset management
  5. 075An institution weighs a private credit fund yielding 13% gross, with 1.5% annual losses, a 1.5% fee and 10% carry over an 8% hurdle, locked for five years, against listed high yield at 9.5% with 1.2% losses and 0.6% fees. Compare net returns and say whether the illiquidity premium is being paid.Fixed income, credit and LDIHardPrivate creditInstitutional asset management
  6. 076Give me a two-minute pitch on Rangrez Paints: one thesis, one catalyst, one risk.Stock pitch and thesis defenceWarm upNorthern TrustChicago · 2022
  7. 077A client's risk questionnaire scores her aggressive, but she needs most of her money for a flat in two years. How do you set her allocation?Client mandates and IPSWarm upWealth managementIndian wealth management
  8. 078An active large cap fund charges 1.8% and is expected to deliver 2.0% of gross alpha with 5% tracking error; an index fund charges 0.2%. What is the chance the active fund beats the index fund in one year, and over ten?Performance evaluation and manager selectionWarm upFund selectionMutual funds
  9. 079An index fund receives Rs 200 crore at 3 pm and cannot buy the stocks until tomorrow. How many index futures lots equitise the cash, and what does it cost?Rebalancing, implementation and costsWarm upPortfolio implementationMutual funds
  10. 080An asset manager's assets rise 20% but it cuts its fee by 5 basis points. What happens to its profit, and why does it move so much?Asset management business and productsWarm upAsset managementIndian asset management

Company names and figures are illustrative.