Fundamentals of Hedge Funds

There's no denying that the reputation of hedge funds took some damage during the credit crisis. But people are now realising that they are not the bad guys after all and excellent returns are possible when investing in this area. This hedge funds course will dispel some of the confusion around the products and will help you understand the opportunities they can offer.

Course Highlights

An excellent course addressing all the key characteristics of hedge funds including regulation and compliance

F.D., Tudor

The most comprehensive overview of the hedge funds market available. Attend this three-day course and equip yourself with:

The skills to demistify the increasing complexity of strategies adopted
The knowledge of the roles and responsibilities of prime brokers, custodians, fund administrators and fund managers
An understanding of the risk characteristics and structure of hedge funds; lessons learned from the credit crunch
The advantages and disadvantages of investing in hedge funds
A clear understanding of the different hedge fund strategies, the regulation of hedge funds and the legal issues
The latest developments in the hedge fund industry

For details of the course trainer, please download the course brochure

Booking Information

Dates	Prices	Book This Course	Discount
01 - 03 Dec 2010	£ 2199		-
25 - 27 May 2011	£ 2199		-

Course Programme

An excellent course addressing all the key characteristics of hedge funds including regulation and compliance

F.D., Tudor

Excellent presentation

Y.M.A., The National Commercial Bank

The best course I've been to!

E.G., Man Investment Products

Day One

Why hedge funds?

The rise of alternative investments
The market for hedge funds and its recent growth
Benefits of adding hedge funds to traditional portfolios
Hedge fund terminology

Hedged funds or funds that call themselves hedge funds

Recent evolution in hedge fund land vis-àvis traditional investment market decline in 2009

The delegates will be able to define an alternative investment vehicle as well as why and how they have become such an important part of the investment world.

Structure and Service Providers

Hedge fund managers & management companies
Administrators and custodians
The role of the Prime Broker
Outsourced providers and hedge funds
Due diligence consultants and investor relationships

The delegates will be able to identify the different types of management structure as well as the importance of those bodies providing services to hedge funds.

Hedge Fund Investor Base and its Ongoing Evolution

The paradigm shift to "absolute return" - style investing
Different hedge fund styles for different clients
Understanding the hedge fund selection process of investors
Hedge fund products from a product sponsor viewpoint
Reviewing the compelling sales argument for hedge products

Day Two

Introducing Hedge Fund Strategies

Typology of hedge fund styles and hedge fund indices
Directional vs arbitrage investment strategies
Market neutrality vs market tracking error investment strategies

Directional and Hedge Equity Strategies

Global macro

Managed futures

Emerging markets

Behavioural finance

Case Study: Dissecting a long short fund trading style, leverage, concentration and securities selection process

The delegates will have worked through examples of these strategies and will be able to explain how they operate in practice.

Fixed Interest Hedge Funds

Credit & capital structure arbitrage
Government bond arbitrage
Mortgage backed securities
Other bond hedge fund styles

The delegates will be have worked through examples of these hedge fund styles and be able to explain their workings to clients.

Arbitrage Styles

Convertible bond arbitrage
Risk and index arbitrage
Capital structure arbitrage

The delegates will have worked through examples of these hedge fund styles and be able to explain their use in performance & diversification.

Derivative Based Hedge Fund Trading

Managed futures and trending/counter-trending strategies

Commodity strategies

Volatility arbitrage

Day Three

Fund of Hedge Funds, Managed Accounts, or Hedge Fund portfolios

Obtaining hedge fund exposure
The buy or build portfolio decision of an institution investor
The pros and cons of obtaining investment exposure via a funds of hedge funds
Negotiating a managed account via a platform
Running an internal portfolio of hedge funds
Structured products on funds of hedge funds and other recent developments

The delegates will be able to recognise the advantages in the fund of funds model and contrast and compare them against structured and guaranteed products.

The Hedge Fund Manager Selection Process

The investment due diligence process on hedge fund managers
Fund documentation and manager meetings
Ongoing monitoring of a portfolio of hedge funds
Style-based analysis of funds

Understanding Risk in Hedge Funds

Hedge funds in recent markets

Hedge fund performance in the 2008 market meltdown

2009 liquidity squeeze on hedge funds

Understanding the causes of investment market risk in hedge funds

2007 market neutral hedge fund meltdown

Understanding hedge fund liquidity risk

2008 Convertible Arbitrage hedge fund disaster

Understanding investors’ reactions in crisis

2009 hedge fund gates

A review of some of the major hedge fund failures

Regulatory control of hedge funds – The SEC and opportunities & threats

The comfort level: defining a solid well risk managed institutional quality hedge fund

Hedge Fund Risk Management Case Study: The benefits of Hindsight
Delegates will be able to analyse and understand the recent developments in markets and the impact they will have on the hedge fund industry.