Hedge Fund Strategies
In-house
A 2 day practical training for Risk, Asset and Fund Managers, Private Bankers and Institutional Investors as well as Prime Brokers, Custodians and Analysts exploring:
- Current market trends and changes in the hedge fund sector
- Events of the past year and how they have affected hedge funds
- Hedge funds styles and strategies
- Implementing hedge funds in a portfolio
- Risk assessment
- Relations with custodians and brokerage houses and fund administrators
- Counterparty risk
The course is taught with hands-on, practical exercises forming the framework for the case study model. All the theory will be explained though recent financial examples and put into current market context to help you apply it in your daily business.
You may be interested in our public course on Hedge Funds Compliance on 14-15 of April in London.
Description
Hedge Funds are going through turbulent times. Changing regulatory requirements, increased transparency and risk management strategies are defining new approach the hedge fund sector has to take on.
This carefully structured 2 day training explores the characteristics of the hedge funds world in the context of recent market events. The course is designed to help you understand the structure as well as the main types of hedge funds and their investment styles and strategies.
You will have a chance to explore and assess different aspects of this asset class in order to consider application of hedge funds in the investment portfolio. You will also gain a solid understanding of the evolving role of custodians, brokerage houses and fund administrators.
The course will be structured around exercises, case studies and practical examples and based on recent market trends which will give you excellent understanding of this financial instrument.
Main Topics Covered During This Training
- Defining hedge funds and the changing market environment– The search for Alpha
- Domicile, onshore and offshore
- Main hedge fund’s tactics – leverage and short-selling
- Relationships with brokerage, custodians and fund administrators
- Counterparty risk
- Assessing use of hedge funds in the investors portfolio
- Risk management for hedge funds
- Hedge funds strategies and styles: directional and non-directional
- Funds of hedge funds
What Will You Learn By The End Of This Training
By the end of this course you will have a sound understanding of the hedge funds sector including different types of investment styles and strategies and the use of hedge funds as an asset class.
You will:
- Understand hedge funds structure and be able to estimate risk characteristics
- Define different hedge fund strategies
- Be aware of the latest strategies in the hedge funds industry and how the latest market events affected this sector
- Examine pros and cons of implementing hedge funds in the investment portfolio
- Have a clear understanding of the regulatory and legal issues related to hedge funds and finally
- Be able to define the roles of prime brokers, custodians and fund managers
Who Should Attend
From Investment Banks, Asset and Fund Managment, Private Banking and Institutional Investors managers and Team Memebers of:
- Risk Management
- Fund Management
- Sales & Distribution Management
- Investor Solution Teams
- Audit, Legal & Compliance Teams
- Pension Fund Managers & Trustees
- Custodians & Fund Administrators
- Prime Brokers
- Family Office Investors
- Hedge Fund Analysts
- Structured Products Managers
- Investment Advisory
- Investor Relations
- Investment Risk & Performance
- Relationship/ Wealth Management
Teaching Method
The course is taught with hands-on, practical exercises forming the framework for the case study model. All the theory will be explained though recent financial examples and put into current market context to help you apply it in your daily business.
You will also benefit from a comprehensive course material.
In order to help us establish your individual and business concerns, you will be asked to fill a pre-course questionnaire.
Hedge Fund Strategies - 2 Day Programme
Day One
Introduction
- Hedge Funds defined. Lock-ups, gates, hurdle rates
- The pursuit of absolute return and performance fees. So what happened in during the crisis?
- How large is the Hedge Fund universe? Lesson from 2008/2009: smaller than it was
- Where are they? Domicile, onshore vs offshore
- Asset class performance or manager value-added? The search for Alpha
Hedge Fund tactics, counter-parties and competition
- Tactics: leverage & short selling. Lesson from 2009: regulatory intervention
- Where is the competition? The reaction from the traditional fund managers
- External relationships: Prime Brokerage, custodians, fund administrators
- Lesson from 2008: Counterparty risk
Issues for Hedge Fund Investors
- Rationale for Hedge Funds in an investors’ portfolio. Is it still there?
- The non-correlated asset class, survivorship bias, drawdown
- Lesson from 2009. HNWIs leaving the ship, Institutions more cautious
- Lesson from 2009: Liquidity mismatch
- Leverage, risk and transparency
- Risk-adjusted performance measurement
- Institutionalisation of Hedge Funds, index providers – benchmark risk
Risk Management for Hedge Funds
- Market , leverage and credit risk
- Political and legal risk
- Gap and liquidity risk, mark-to-market risk
- Why do Hedge Funds fail? Do not forget operational risk
- Due diligence. Lesson from 2009: The Madoff affair
- Tools for the analysis of financial risk – From VaR to stress testing
- The Regulator’s standpoint
Day Two: Hedge Fund Styles and Strategies
The most popular strategy - Long-short equity
- Mechanics of short selling
- Stock lending
- Risk management
- Variation on a theme - 130/30 strategies
- Derivative trading alternatives
Hedge Fund Investment Styles - Directional
- Overview of style variations – From low to high market exposure
- Distressed debt
- Global Macro
- Managed Futures – Technical analysis at work
Hedge Fund Investment Styles – Non-Directional
- Market neutral and relative value arbitrage – Equity and fixed income
- Event-driven and risk arbitrage
- Convertible arbitrage
- Hedge Fund Style Index Performance and volatility data
- Lesson from 2009: which strategies worked, which didn’t & why
- Looking at 2010, which strategies should perform better than others & why
Funds of Hedge Funds
- Rationale for the Fund of Funds route – Diversification and risk management
- Strategy and manager orientation - The due diligence process
- Risk management and the monitoring process
- Fund of Funds in practice
Paul Meadows
Paul started his career in 1983 at Royal Insurance in the long-term equity portfolio team. In 1990 he joined Swedish insurer Trygg-Hansa’s London start-up operation to manage its UK Equity exposure.
In 1994 he moved into the Private Client arena, as part of the Investment Unit of Lloyds Private Banking & over a two year period diversified away from an exclusive analytical/Fund Management role to incorporate an extensive presentational package on the Bank’s investment strategy delivered ‘on the road’ to its network of offices around the country.
In 1996 Paul joined Bank of Butterfield to head up the global Equity research effort in London in support of the Bank’s (offshore) private client base. By this time that he had also developed training material covering most aspects of Portfolio Management & the behaviour of institutional investors for delivery (as a freelance consultant) to a wide range of audiences in the UK & abroad. This was subsequently extended to incorporate the Private Client Asset Management area.
Paul had a spell with an international high-risk security company analysing the operations of quoted oil & mining corporates worldwide. In 2000 Paul moved into full time training with main course providers, specialising in Fund Management, Equity Markets, Private Banking & Hedge Funds.
Clients trained include Citigroup, Man Investments, Axa Investment Managers, Barclays Global Investors, HSBC, Renaissance Capital.
IN-HOUSE TRAINING
- If you have a team of 4 or more this course can be customised and organised in-house at your convenience. Contact one of our advisors to find out more.
Call us now on +44 (0) 207 993 8597
or send us an e-mail to enquiry@eurekafinancial.com
