Hedge Funds Fundamentals
In-House One Day Training
Description
This short course is designed to explain the main aspects of the hedge fund market today. The workshop gives a good overview of the current trends and the main players. You will have a chance to learn about key investment styles and strategies
This course aims at anyone who has some exposure to this sector and wants to understand hedge funds fundamentals.
The training can be customised and run over 2 days explaining in detail different investment ivestment styles and strategies.
Main Topics Covered During This Training
- Defining hedge funds – The search for Alpha
- The role and relationship with brokerage, custodians and fund administrators
- Hedge fund as an asset class
- Directional investment styles:
- Equity long/short
- Distressed debt
- Managed futures
- Global macro
- Non-directional investment styles:
- Equity market neutral
- Event driven/risk arbitrage
- Fixed income/credit arbitrage
- Convertible bond arbitrage
- Risk management for hedge funds
- Lessons learnt from 2008
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:
- Define different hedge fund investment styles and strategies
- Be aware of the latest strategies in the hedge funds industry and how the recent market events affected this sector
- Examine pros and cons of implementing hedge funds in the investment portfolio
- Have an understanding of the regulatory and legal issues related to hedge funds
- Be able to define the roles of prime brokers, custodians and fund managers
Who Should Attend
This course aims at anyone who wants to understand the fundamentals of the hedge fund sector.
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 Funds – a role redefined? A One Day Programme
The training can be customised and run over 2 days explaining in detail different ivestment styles and strategies.
Session 1
Hedge Funds – What are they?
- Hedge funds defined. Lock-ups, gates, hurdle rates
- The pursuit of absolute return & performance fees. So what happened in 2008?
- How big is the hedge fund universe? Lesson from 2008: Smaller than it was
- External relationships - Prime brokerage, custodians, fund administrators
- Tactics: leverage & short selling. Lesson from 2008: regulatory intervention
Case Study: How do investors choose their hedge fund manager?
Session 2
Why hedge funds? The big issues for investors
- Rationale for hedge funds in an investors’ portfolio. Is it still there?
- The non-correlated asset class, survivorship bias, drawdown
- Lesson from 2008. HNWIs leaving the ship, institutions more cautious
- Lesson from 2008: Liquidity mismatch
- Benchmarking problems for hedge fund investors
Case Study: Exclusion criteria in the due diligence process
Session 3
Hedge fund investment styles - directional
- Overview of style variations – Directional vs non-directional
- Equity long/short
- Distressed debt
- Managed futures
- Global macro
Session 4
Hedge fund investment styles – non-directional
- Equity market neutral
- Event driven/risk arbitrage
- Fixed income/credit arbitrage
- Convertible bond arbitrage
- Lessons from 2008: Which strategies worked, which didn’t & why
- Looking at 2009, which strategies should perform better than others & why
Case Study: Hedge Fund Style Index performance data
Session 5
Risk management for hedge funds
- Market, leverage and credit risk
- Political and legal risk
- Gap and liquidity risk, mark-to-market risk, style drift risk
- Why do hedge funds fail? Do not forget operational risk
- Due diligence. Lesson from 2008: The Madoff affair
- Tools for the analysis of financial risk – From VaR to stress testing
Our Trainer 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, Brevan Howard, HSBC, Renaissance Capital.
This course can be run in any of your offices worldwide.
This is a cost-effective and targeted way to ensure that your employees are equipped with the best skills and undustry knowledge.
Contact us to discuss further your requirements.
Call us now on +44 (0) 207 193 5035
