Course Goals & Overview:
Participants will be introduced to the psyche of a hedge fund and learn how to think like a buy-side analyst. Through this course, participants will be shown how to expand their analysis beyond theory (valuations, trends, etc.) and apply the same practical techniques that hedge funds do. Specifically, learn what information is valued by funds, how and when hedge funds buy stocks, how single stock ideas are vetted through the construct of an entire portfolio, and how/why short decisions are made. Trade strategies will be detailed so conceptual ideas can be presented as actionable trades. Trading mechanics such as short interest, liquidity analysis, and ownership will also be discussed. Participants will be shown where to gain insights on funds and how to cater ideas/information to the fund’s existing book of stocks, market exposure, and stated mandate. If you’re a buy-side professional, you must master these fundamentals. If you’re a sell-side professional, adoption of these techniques will increase the value of the presenter’s ideas and result in increased and stronger buy-side relationships.
Course Sections:
Thinking like Hedge Funds
Understanding what information funds value, what they don’t and what they pay attention to
Making stock ideas more practical – moving beyond valuation and theory
When a fund might short a stock even though fundamental valuation says fair or even undervalued
Shorting
Shorting as a source of funds and viewing short performance relative to the offsetting long position
Managing return expectations for a short; distinguish between hedges, absolute returns & capital sources
Performance
Understanding how beta impacts returns and managing funds’ exposures
Distinguish between AUM and assets deployed – and the impact on manager performance and risk
Liquidity & Trades
The impact of liquidity on stock selection and profiting from anticipated liquidity changes
Designing trades with the whole portfolio in mind and pair trades – when & why & how they work
Understanding the impact of sentiment on anticipated trades
Knowing and Using the Information Available to You
Where to find relevant filings – understanding what they mean
Following competitors’ trades while maintaining discretion in your own book
Profiting from liquidations
Calculate net change to development properties, construction in process and investment
Prerequisites:
Accounting & Financial Statements Integration
Corporate Valuation Methodologies
Overview of Financial Markets
Video Length / Estimated Total Course Time:
2 hours / 3 hours
Individual Course Price:
$250
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Sample Video Clips
Hedge Fund – Mechanics & Applications of Long/Short HF