Introduction to Hedge Funds

In addition to your class tuition and study materials, you will receive the following:


Case Study

• Strategy drill-down: would you like to run a Global Macro Hedge Fund?
• Strategy drill-down: using real world examples and prices we will value and 'put on' an equity long-short intra-sector trade

Other Extras

• Certificate of attendance

Level: Intermediate


Synopsis:
This course will demystify the dynamic, diverse and complex world of hedge funds: where they come from; who they are; what they do and why they do it. It has proved particularly insightful to those who work within this absolute return environment and those who are drawn into servicing this new class of investors.


At the end of the course participants will be able to: Draw conclusions about the likely future development of hedge funds . Examine how hedge funds manage risk . Understand what fund of funds offer and how they are constructed . Identify and consider the major hedge fund strategies . Consider how hedge funds utilise the capital markets and derivative products . Understand the difference between hedge funds and traditional funds . Understand what hedge funds are and the background to their growth .


Prerequisites:
Introduction to Investment Management or equivalent


Suitable For:
Anyone who is exposed to hedge funds or who is interested in learning about this important and growing sector within the global capital markets.


Industry Overview

• The Origins of Hedge Funds
• Motivations
• Key Players
• Growth and Performance

Differentiating Features

• Why Hedge Funds are Different
• Ten Differentiating Features

The Major Hedge Fund Strategies

• Classifying hedge funds
• Directional versus Non-Directional
• Equity Long-Short / Equity Neutral / Equity Bias
• Global Macro
• Commodity Trading Advisors
• Relative Value Arbitrage
• Convertible Arbitrage
• Fixed Income Arbitrage
• Merger Arbitrage
• Other strategies

Hedge Funds & Capital Markets

• Regulatory framework
• Changes in the industry landscape
• The Role of Prime Brokerage

Hedge Funds & Derivatives

• The Major Products: Equity, Debt, Foreign Exchange
• Equity Futures / Equity Swaps
• Fixed Income Derivatives / Interest Rate Swaps
• Credit Derivatives / Default Swaps

The Fund of Funds Product

• The Interview Process
• The Disclosure Process
• The Risk Assessment Process
• Creating a Fund of Funds

Looking at Risk

• Measuring Performance
• Identifying and Measuring Risk
• Managing Risk
• Risk / VaR Models
• Risk-Adjusted Performance

Hedge fund databases and indices

• Most popular databases
• Hedge fund indices
• Limitations of hedge fund indices

The Future?

• Changing Dynamics of Hedge Fund Strategies
• The Pension Dilemma and the Core- Satellite Model
• New Hedge Fund Products
• Hot Topics